Keep the change
I’m grateful that I have health insurance because when I saw my check from Humana, I nearly went into shock. Like most Americans, I expect to pay and pay my private insurers as I strive to never use the services for fear I’ll be branded with a preexisting condition. But suddenly, here’s Humana paying me back $61.70.
For many, the $1.1 billion in rebates are the first benefit of ObamaCare that they’ll hold in their hand. They’re the result of the 80-20 rule, which some have called “The Bomb Buried Inside ObamaCare.” For the first time ever, private insurers are being forced to account for the money they charge and spend on their customers.
Here’s how Humana explains it:
The Affordable Care Act requires Humana Insurance Company to issue a rebate to you if Humana Insurance Company does not spend at leas 80 percent of the premiums it receives on health care services, such as doctors and hospital bills, and activities to improve health care quality, such as efforts to improve patient safety. No more than 20 percent of premiums may be spent on administrative costs such as salaries, sales and advertising. This requirement is referred to as the “Medical Loss Ratio” standard of the “80/20 rule”. The 80/20 rule in the Affordable Care Act is intended to ensure that consumers get value for their health care dollar.
Even before ObamaCare, health care insurance wasn’t a choice in modern society. For most of us, it’s a tax that guarantees a basic standard of living and a hedge that will hopefully prevent bankruptcy in a worst-case scenario. The idea of my insurer being forced to account to me what it spends was nothing less than a joy.
In your state, Humana Insurance Company did not meet the Medical Loss Ratio standard. In 2011, Humana Insurance Company spent only 74.4% of a total of $20,990,909 in premium dollars on health care and activities to improve health care quality. Since it missed the 80% target in your state by 5.6% of premiums it received, Humana Insurance Company must rebate 5.6% of your health insurance premiums.