Study: Texas Tops Health Insurance Rebate List
Texas consumers and businesses are poised to receive an estimated $186 million in rebates from health insurers under a requirement of the Affordable Care Act, according a study released today by the Kaiser Family Foundation.
The health care act’s medical loss ratio provision requires insurers to issue rebates if their total administrative expenses and profits are relatively higher than those permitted under the act. The Kaiser study estimates that 92 percent of Texas consumers in the individual insurance market will receive rebates, the highest figure for any state in the country.
The provision, which went into effect in January ...
Comments (3)
Lark Jarvis via Texas Tribune on Facebook
"Now" is better than "phased in over 3 years" . . . . .logically . . except that it probably isn't, I'm guessing, because the net effect will most likely be to raise premiums, thereby making everyone say, "oh that awful Affordable Care Act . . "
Vibeke Mendonca Lee via Texas Tribune on Facebook
Some interesting what- ifs - can the prospect of a rebate encourage people (and providers) to stop overutilizing the glut of testing we are so famous for; if SCOTUS strikes down the mandate but keeps the regulations regarding denials, pre-existing conditions etc. will insurance companies go out of business or become non-profit as in other countries, even leading the way to a publicly funded system. Theoretically, the exchanges would eliminate insurance companies' ability to price individual and small group policies out into the stratosphere and those that do would be quickly out of business. We are still in for a bumpy ride and the next couple of years will be make it work or back to the drawing board. If evidential date show insurance companies are spending more than 20% on administrative cost and consequentially had to pay rebates, they would not be allowed to raise premiums based on that - only if they were actually spending more than 85% on care, should they be allowed to increase premiums.
Tammy Blair
I can't help but wonder what BCBS is doing with all the premiums my family pays. With premiums for a family of 5 now over $15,000 a year, and few claims, what are they doing with all of that? I'll tell you...they're using it to pay for other people. So I may get a rebate...average around $193? Gee thanks.