Insurer's Issuing Rebate Checks Lowering Premiums. Thanks Obamacar

[skews13]

http://thinkprogress.org/health/2013/06/07/2121051/insurers-rebate-checks-premiums-obamacare/

 

 

 

 

 

 

 

 

Americans who bought individual health plans in 2012 saved $2.1 billion thanks to Obamacare consumer protections that limit how much insurers can profit off of Americans’ premiums, according to a new study by the Kaiser Family Foundation (KFF). The vast majority of those savings stem from individual health plan providers lowering the premiums they charge Americans in an effort to comply with the reform law.

 

The Kaiser study comes shortly after several major California insurers announced that they would have to pay back $36 million to small businesses and their employees after charging them too much. Obamacare mandates that insurers on the individual market spend at least 80 percent of the premiums they charge on actual medical services, or reimburse the amount they overspent to their customers.

 

But insurers can avoid writing those checks after-the-fact if they just lower their premiums to begin with — and KFF’s study concludes that’s what many individual plan providers have been doing. KFF estimates that individual market insurers lowered their premiums by $856 million in 2011 and by $1.9 billion in 2012 to comply with the so-called “80/20 rule”:

 

 

 

 

The combination of these premium savings and rebate checks meant that Americans who bought their own insurance spent 7.5 percent less on their coverage in 2012 than they would have without Obamacare’s consumer protections.

 

That’s an important victory for consumers since individual insurance plans tend to offer meager benefits at high prices, especially to sick Americans.

 

Obamacare will also change that status quo soon enough. Once the law’s main provisions go live in 2014, individual and small group health plans sold on its statewide insurance marketplaces must offer ten “essential health benefits” to consumers, including for mental health care, prescription drug, and maternity services.

 

Initial insurer bids for the marketplaces in several states have indicated that premiums will be affordable, and even lower than what many plans currently charge for far worse coverage.

 

[Wharf Rat2]

To the top. Its just getting started.

[shintao]

To the top. Its just getting started.

So the insurance company can make a 20% profit. That seems fair to me. We should do the same to doctors and pharmacys.

[Golfboy]

Strange. Under Obamacare, the government has to approve rates, so how did they manage to overcharge people like this in the first place?

According to healthcare.gov, the rebates average $11/month. While I'm all for people keeping their own money, I think it's pretty funny to watch the celebration on liberal websites over $11/month.

So the insurance company can make a 20% profit. That seems fair to me. We should do the same to doctors and pharmacys.

Actually no, the 20% is for doing the work of their business, not for profits.

It's amazing how uninformed liberals are about the laws they support and how business works.

[PoliticalPopUp]

Big Changes in College Health Plans

June 4th, 2012 § 0 comments

 

According to a Wall Street Journal article published online yesterday, colleges and universities across the country are being forced to raise the premiums and cut coverage options for student health plans as a result of PPACA-related reforms. Since student health plans were not allowed to apply for “mini med” waivers to PPACA’s annual limit requirements like many union and employer-sponsored plans, the health reform law’s annual limit requirement has had a substantial impact on the cost and availability of such coverage.

[Totally Rad]

Strange. Under Obamacare, the government has to approve rates, so how did they manage to overcharge people like this in the first place?

According to healthcare.gov, the rebates average $11/month. While I'm all for people keeping their own money, I think it's pretty funny to watch the celebration on liberal websites over $11/month.

link?

[crimsongulf]

Well just for S&G's I went here and plugged some numbers in.

 

http://www.coveredca.com/calculating_the_cost.html

 

It came out to $1159 @ month for a silver plan.

 

I went here to find out what a silver plan was

http://www.netquote.com/health-insurance/news/coverage-levels-under-health-care-reform.aspx

 

 

Worse coverage than I have now for more money.

 

 

Hep me out here.

[Right Wing Liberal]

So the insurance company can make a 20% profit. That seems fair to me. We should do the same to doctors and pharmacys.

If you think the solution to medicine is to regulate how much money you get for giving a healthy child some Ritalin he or she doesn't need, you should probably go f**k yourself - as soon as possible.

 

Strange. Under Obamacare, the government has to approve rates, so how did they manage to overcharge people like this in the first place?

According to healthcare.gov, the rebates average $11/month. While I'm all for people keeping their own money, I think it's pretty funny to watch the celebration on liberal websites over $11/month.

 

Actually no, the 20% is for doing the work of their business, not for profits.

It's amazing how uninformed liberals are about the laws they support and how business works.

Under Obamacare, the government has to approve rate HIKES. The existing rates are not placed under this supervision.

Also, the government might well approve rates that are too high; they do this all the time with electricity.

But the rebates don't come from rate overages. The requirement is that the insurers spend 80% of premium dollars on medical care. Since they have no way of knowing in advance the exact number of dollars they will spend based on periodic need and fluctuating prices from providers., it actually makes perfect sense to minimally overcharge customers and then pay them back.

If they didn't, they might end up netting less than 20%, instead of exactly 20%.

 

You know what? You're right. I had not understood this before.

But it's equally amazing how you didn't understand why they would overcharge to ensure they got exactly the 20% they are permitted instead of less.

We each learned something.

 

Well just for S&G's I went here and plugged some numbers in.

 

http://www.coveredca.com/calculating_the_cost.html

 

It came out to $1159 @ month for a silver plan.

 

I went here to find out what a silver plan was

http://www.netquote.com/health-insurance/news/coverage-levels-under-health-care-reform.aspx

 

 

Worse coverage than I have now for more money.

 

 

Hep me out here.

Okay:

 

DON'T GET A SILVER PLAN.

There. Helped ya.

[onedrum]

 

http://thinkprogress.org/health/2013/06/07/2121051/insurers-rebate-checks-premiums-obamacare/

 

 

 

 

 

 

 

 

Americans who bought individual health plans in 2012 saved $2.1 billion thanks to Obamacare consumer protections that limit how much insurers can profit off of Americans’ premiums, according to a new study by the Kaiser Family Foundation (KFF). The vast majority of those savings stem from individual health plan providers lowering the premiums they charge Americans in an effort to comply with the reform law.

 

The Kaiser study comes shortly after several major California insurers announced that they would have to pay back $36 million to small businesses and their employees after charging them too much. Obamacare mandates that insurers on the individual market spend at least 80 percent of the premiums they charge on actual medical services, or reimburse the amount they overspent to their customers.

 

But insurers can avoid writing those checks after-the-fact if they just lower their premiums to begin with — and KFF’s study concludes that’s what many individual plan providers have been doing. KFF estimates that individual market insurers lowered their premiums by $856 million in 2011 and by $1.9 billion in 2012 to comply with the so-called “80/20 rule”:

 

 

 

 

The combination of these premium savings and rebate checks meant that Americans who bought their own insurance spent 7.5 percent less on their coverage in 2012 than they would have without Obamacare’s consumer protections.

 

That’s an important victory for consumers since individual insurance plans tend to offer meager benefits at high prices, especially to sick Americans.

 

Obamacare will also change that status quo soon enough. Once the law’s main provisions go live in 2014, individual and small group health plans sold on its statewide insurance marketplaces must offer ten “essential health benefits” to consumers, including for mental health care, prescription drug, and maternity services.

 

Initial insurer bids for the marketplaces in several states have indicated that premiums will be affordable, and even lower than what many plans currently charge for far worse coverage.

 

 

People are going to learn to love this program after it finally kicks into law in 2014, the only reason anyone is apprehensive about it is because fox and Limbaugh spend hours every day trying to run it down.

[Cedarswamp]

So the insurance company can make a 20% profit. That seems fair to me. We should do the same to doctors and pharmacys.

 

Too stupid to understand the law eh?

[TheNightStalker]

So the insurance company can make a 20% profit. That seems fair to me. We should do the same to doctors and pharmacys.

 

20%? LOL. Health insurance companies make 5% if they are lucky.

[JTZilla]

another lying thread by a ignorant lib

[crimsongulf]

Okay:

 

DON'T GET A SILVER PLAN.

There. Helped ya.

 

Didn't help as a silver plan is significantly less coverage and more money. A silver plan only covers 70%, while my existing plan has a $3,000 joint deductible plus a flat $300 for a hospital stay.

 

The "Less is More" argument does not work.

[king of the county]

Has anyone bought the $19.95 book that tells you all about ACA? Until you do no one really knows what the plan is all about

[byebyecons]

Has anyone bought the $19.95 book that tells you all about ACA? Until you do no one really knows what the plan is all about

Unless you go on line and read them, dumbass.

[crimsongulf]

$1,159 @ month for crappy coverage is not a deal. Sorry.

[tharock220]

I suppose this would be a good thing for liberals if the insurance companies didn't stand to get millions from individuals and government when the mandate kicks in.

[Right Wing Liberal]

 

Didn't help as a silver plan is significantly less coverage and more money. A silver plan only covers 70%, while my existing plan has a $3,000 joint deductible plus a flat $300 for a hospital stay.

 

The "Less is More" argument does not work.

Yeah, so don't get that plan. Get a different one. WTF.

[Golfboy]

link?

healthcare.gov

It was in the post you quoted, asking for this link... and I actually got there from one of Screws OP link.

Stop being a liberal expecting to be hand fed. Highlight, right click and pick "search google".

Use the force Luke.

 

 

Yeah, so don't get that plan. Get a different one. WTF.

 

 

Cheapest one for young people is going to cost more than 100% current rates because they have to pay for the elderly and previously uninsurable.

Congratulations. I suggest next time thinking about the bills you support.

Only a total moron and economic neophyte could think that you can expand coverage to more people, give them better plans, and lower cost.

 

Unless you go on line and read them, dumbass.

When are you going to do that?

 

 

20%? LOL. Health insurance companies make 5% if they are lucky.

3% if they are lucky. Our liberal friend there isn't exactly a rocket scientist, is he?

[TheNightStalker]

3% if they are lucky. Our liberal friend there isn't exactly a rocket scientist, is he?

 

Its that low now. I'm surprised these companies even bother any more.

[mandrew002008]

This whole thing was horse shit from the very beginning....

[bingster]

healthcare.gov

It was in the post you quoted, asking for this link... and I actually got there from one of Screws OP link.

Stop being a liberal expecting to be hand fed. Highlight, right click and pick "search google".

Use the force Luke.

 

 

 

 

Cheapest one for young people is going to cost more than 100% current rates because they have to pay for the elderly and previously uninsurable.

Congratulations. I suggest next time thinking about the bills you support.

Only a total moron and economic neophyte could think that you can expand coverage to more people, give them better plans, and lower cost.

 

When are you going to do that?

 

3% if they are lucky. Our liberal friend there isn't exactly a rocket scientist, is he?

You're the moron, as usual. You can expand the coverage when you're forcing people to buy a coverage. Yes, there are some susidies, but you always miss the point. " elderly and previously uninsurable"? Really? Is your brain actually hooked up? The elderly already have health care, genius. The insurance company won't have to charge more because of two things you economic neophyte: 1. With more customers (due to ACA) they will take in larger profits 2. They can't charge more, as per 80/20.

[crimsongulf]

Well just for S&G's I went here and plugged some numbers in.

 

http://www.coveredca.com/calculating_the_cost.html

 

It came out to $1159 @ month for a silver plan.

 

I went here to find out what a silver plan was

http://www.netquote.com/health-insurance/news/coverage-levels-under-health-care-reform.aspx

 

 

Worse coverage than I have now for more money.

 

Says it all. $1,159 @ month for crap coverage, silver only covers 70% which can still leave you with some huge bills. Even their so called platinum plan does not cover what I have now.

[Zaro]

$1,159 @ month for crappy coverage is not a deal. Sorry.

should not be a problem for a big money bag like you

[KO KING]

 

http://thinkprogress.org/health/2013/06/07/2121051/insurers-rebate-checks-premiums-obamacare/

 

 

 

 

 

 

 

 

Americans who bought individual health plans in 2012 saved $2.1 billion thanks to Obamacare consumer protections that limit how much insurers can profit off of Americans’ premiums, according to a new study by the Kaiser Family Foundation (KFF). The vast majority of those savings stem from individual health plan providers lowering the premiums they charge Americans in an effort to comply with the reform law.

 

The Kaiser study comes shortly after several major California insurers announced that they would have to pay back $36 million to small businesses and their employees after charging them too much. Obamacare mandates that insurers on the individual market spend at least 80 percent of the premiums they charge on actual medical services, or reimburse the amount they overspent to their customers.

 

But insurers can avoid writing those checks after-the-fact if they just lower their premiums to begin with — and KFF’s study concludes that’s what many individual plan providers have been doing. KFF estimates that individual market insurers lowered their premiums by $856 million in 2011 and by $1.9 billion in 2012 to comply with the so-called “80/20 rule”:

 

 

 

 

The combination of these premium savings and rebate checks meant that Americans who bought their own insurance spent 7.5 percent less on their coverage in 2012 than they would have without Obamacare’s consumer protections.

 

That’s an important victory for consumers since individual insurance plans tend to offer meager benefits at high prices, especially to sick Americans.

 

Obamacare will also change that status quo soon enough. Once the law’s main provisions go live in 2014, individual and small group health plans sold on its statewide insurance marketplaces must offer ten “essential health benefits” to consumers, including for mental health care, prescription drug, and maternity services.

 

Initial insurer bids for the marketplaces in several states have indicated that premiums will be affordable, and even lower than what many plans currently charge for far worse coverage.

 

 

Whatever, state employees here learned today they would be hit with another 40% rate increase on their healthcare plans, that $8 rebate check will sure solve the problem.