What Does My Premium Payment Pay For?
Before you blame the health insurance companies for being “greedy”, it’s important to note, there is a clause in the Affordable Care Act that is called the Medical Loss Ratio (MLR).
This Medical Loss Ratio states that insurance companies must pay a minimum of 80-85% of all the dollars they collect in premiums towards medical bills they receive (claims). In other words, if an insurance company collects $100 in a premium, $80 to $85 MUST pay a medical claim.
If at the end of the year they have collected too much from their members, they must send their members back a “rebate” check or give the members a credit for a future premium. So that leaves the insurance company the remaining 20% to pay all of their expenses (employees, buildings, marketing, broker costs etc). Within the 80-85% ratio’s, the insurance company can also spend money on things that improve healthcare quality. This medical loss ratio requires all insurance companies to send detailed reports to the Government about money being spent. The reports are a big responsibility and are very time consuming for the insurance companies to comply with.
When you hear someone talk about their premiums going up, have them read this definition and explanation.
Getting a Refund
We read an article a while back stating that the residents in Florida, almost 1 million customers, received a $65 refund because of this rule. The insurance company collected too much money in premiums and had to refund their customers the overage collected. Here in Nevada, we’ve had many customers receive a medical loss ratio refund too.
Your Health Insurance Benefits
Health insurance is very expensive these days. Your ACA qualified health insurance plan must cover these 10 “essential health care benefits”.
- Outpatient Treatment “Ambulatory Services”
- Emergency Care
- Hospitalization
- Maternity and Newborn Care
- Mental Health and Substance Abuse
- Prescriptions
- Rehab services and devices
- Laboratory
- Preventive / Wellness
- Pediatric Services – dental and vision
All of these services alone are very expensive, but ACA Qualified health plans must cover all of them. Prescription coverage alone accounts for a huge percentage of your premium.
Seeking Guidance With Nevada Insurance Enrollment
Navigating through the many options of insurance can be confusing and chaotic, but speaking with a locally licensed insurance agent will help you obtain the right coverage. You’ll have the peace of mind knowing that you are adequately insured when life complications arise. We work hard to find the most competitive quotes for your needs. Contact us today to begin the process of finding the best insurance plan for your family.
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Things Potentially NOT Covered By Your Health Insurance
To be fair, in recent years, health insurance companies have made strides towards transparency. If you have an ACA-compliant plan, there are many services that your health insurance is legally required to cover, taking some of the guesswork out of budgeting for health expenses.
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The Affordable Care Act / Obamacare, put specific enrollment periods in place to prevent people from only enrolling in health insurance when they were sick or needed surgery.
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Recent Posts
Health Insurance, Vision Insurance or Both?
Vision insurance pays for a portion of expenses such as basic preventative care, including vision tests and eye exams. It also covers eyeglasses, including the lenses and the frames, and/or contacts. Depending on your plan, there may be additional benefits, such as coverage for daily disposable contacts.
Comparing Medicare Advantage To Medicare Supplement
During the Medicare Annual Election Period (AEP), which is from October 15th through December 7th each year, many people may ask the question, “Do I want a Medicare Advantage Plan or a Medicare Supplement Plan (Medigap)?”
Can You File for Medical Bankruptcy?
The short answer is yes; medical debt is considered non-priority unsecured debt and can be discharged in bankruptcy. While you cannot target medical debt in bankruptcy, this process can help lower payments or eliminate the debt altogether.
Understanding Your New Health Insurance Plan
If you’ve recently enrolled in a health insurance plan, there are several things that you can do while you’re waiting for your coverage to begin. Being proactive while you’re waiting for coverage can ensure that you receive quality healthcare.