REAL WORLD EVENT DISCUSSIONS

Health Reform’s First Insurance Rebates Go Out

POSTED BY: NIKI2
UPDATED: Sunday, August 5, 2012 05:07
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Saturday, August 4, 2012 7:47 AM

NIKI2

Gettin' old, but still a hippie at heart...


I like that it's caused insurance companies to cut some of their overhead. I don't mind if we don't get a rebate; knowing it's causing them to improve their cost ratio is good enough for ME.
Quote:

Wednesday marked a milestone in the implementation of President Obama’s health reform law as insurance companies quietly doled out $1.1 billion to 12.8 million Americans in rebates.

The Affordable Care Act (ACA) aims to limit the amount of money insurers can collect in profit, while lowering the cost of health care for consumers and maintaining the same standards of coverage. To do this, the Administration created new federal standards for the Medical Loss Ratio, a tool long used by state governments to regulate insurers. As TIME’s Kate Pickert describes in detail, the ACA requires insurers to spend a certain percentage of what consumers pay them (either 80% or 85%, depending on the size of the market in which the insurer operates) on medical claims and quality improvement initiatives. The remainder can be used for administrative costs and profits. If insurers stray from that ratio, they will now have to send out rebates to cover the difference.

So how did the first ACA rebates turn out? According to the Department of Health and Human Services, most insured Americans–66.7 million people–did not get rebates. Those that did were mostly in the individual market or in a small group market. The average rebate per family was $151, with the highest rebate exceeding $800 for families in select markets in Georgia.

The rebates were smaller than some expected, in part because many insurance companies have already changed their practices, slashing administration costs or spending more on quality improvement in anticipation of the new MLR rules going into effect.

“The rebates were certainly smaller than what would have been reported last year,” says Tim Jost, a law professor at Washington and Lee University. “Last year there were no rebates, but the insurers filed supplemental blanks with the National Association Insurance Commission, and those blanks showed that if rebates had been paid it would have been around $1.9 billion dollars.”

Robert Zirkelbach, a spokesman for America’s Health Insurance Plans, a lobbying group, emphasizes that rising health insurance premiums are the result of increasing medical costs, not corporate profits. “Ninety-six percent of the increase in premiums over the past five years was due to an increased spending on health care services,” he says.

Jost agrees that health care services drive up premiums, but insurers still play a part. “The situation we’ve had for two years, three years, is that health care costs have not been going up very fast, and premiums have been going up much faster. Medical Loss Ratio is not a silver bullet, it’s not going to kill health care cost inflation. What it is going to do is, and is doing, is to align premium increases with health care cost increases.”

According to a recent study conducted by the consulting firm Towers-Watson, health care costs have grown 5.9% in the last year, while employees’ share of premiums increased 9.3%.

Future rebates will likely be smaller and doled out to fewer Americans as more insurers comply with the ACA’s MLR rules. But the new round of rebates has arrived at a convenient time for President Obama. While most of the larger provisions of the ACA like the individual mandate won’t kick in until 2014, the rebates are a tangible reminder to 12.8 million Americans that Obama’s signature domestic initiative is doing a little something for them. In an election year, that’s good news for the President.

Well, it's a start. I don't see how the Republicans...even if they can...will be able to overturn the ACA once people experience what it's actually about. The problem to me is that the Obama Administration didn't EXPLAIN what's in it well enough, while the right-wing propaganda machine has managed to vilify it. We'll see what happens after the election...

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Saturday, August 4, 2012 8:06 AM

AURAPTOR

America loves a winner!



At all costs this must be revoked, or this country is absolutely finished.


" We're all just folk. " - Mal

" AU, that was great, LOL!! " - Chrisisall

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Saturday, August 4, 2012 8:11 AM

M52NICKERSON

DALEK!


Quote:

Originally posted by Niki2:Well, it's a start. I don't see how the Republicans...even if they can...will be able to overturn the ACA once people experience what it's actually about. The problem to me is that the Obama Administration didn't EXPLAIN what's in it well enough, while the right-wing propaganda machine has managed to vilify it. We'll see what happens after the election...


You hit the nail on the head. The GOP talked about this reform as if it was some government take over and people bought it. It will be hard to keep that lie up as more an more people figure out they are befitting from this.

I do not fear God, I fear the ignorance of man.

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Saturday, August 4, 2012 10:55 AM

AURAPTOR

America loves a winner!



It absolutely is a govt take over, and it's stunning that you don't see it as such.

seriously, we're talking through the looking glass bizarre baffling that you don't see it.


" We're all just folk. " - Mal

" AU, that was great, LOL!! " - Chrisisall

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Saturday, August 4, 2012 11:06 AM

M52NICKERSON

DALEK!


Really, what part of the health care system is know owned by the government?

I do not fear God, I fear the ignorance of man.

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Saturday, August 4, 2012 11:19 AM

STORYMARK


Quote:

Originally posted by AURaptor:

It absolutely is a govt take over, and it's stunning that you don't see it as such.



It absolutely is not, and any rational person can see that. It's in no way stunning that you believe it, though, as you gobble up every tiny shred of bullshit fed to you by rightwing media, with never a question asked.

Keep slurpin, Rappy.


Note to anyone - Please pity the poor, poor wittle Rappyboy. He's feeling put upon lately, what with all those facts disagreeing with what he believes.

"Goram it kid, let's frak this thing and go home! Engage!"

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Saturday, August 4, 2012 4:42 PM

6IXSTRINGJACK


All funded by Chinese debt....

No wonder the Russians only have like 1 gold medal today....

It's a miracle that we have half the medals that China has today.....


Coming from a kid that grew up loving Red Dawn, I can't wait until we team up with Russia to overthrow our new Masters.



(Meanwhile, those begging for hand-outs and fighting for them state-side will be considered enemies)

"A government is a body of people, usually notably ungoverned." ~Shepherd Book

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Sunday, August 5, 2012 3:51 AM

NIKI2

Gettin' old, but still a hippie at heart...


What you said, Mark, and no, it's absolutely NOT surprising Raptor spouts what he does. I should save that remark that if it's not repealed this country is dead...which of course he will refute or go back and edit when we toss it at him years from now. But then, it's not important enough or interesting enough to make the effort, is it? He only knows how to regurgitate pablum and is incapable of thinking for himself, so why bother?


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Sunday, August 5, 2012 5:07 AM

M52NICKERSON

DALEK!


Quote:

Originally posted by 6ixStringJack:
All funded by Chinese debt....



The largest holder of US debt is the Federal Banks of the US, Chine is in a distant second.

Plus health care reform will reduce the debt...but what does the CBO know?

I do not fear God, I fear the ignorance of man.

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