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"The ACA does include a minimum medical loss ratio so health plans that come in under the limit are forced to issue premium refunds to customers." The loss rat
by vjvjvjvjghv 1y ago
"The ACA does include a minimum medical loss ratio so health plans that come in under the limit are forced to issue premium refunds to customers."
The loss ratio seems to be a good incentive for insurance to pay more to hospitals in order toincrease their own cut of the premiums they are taking in.
- nradov 1y agoSure, that's part of it and the minimum medical loss ratio does create some perverse incentives. But in most markets there are intense competitive pressures between health plans which motivates them to negotiate lower rates with network providers. Your employer would be happy to switch from Aetna to Humana (or whatever) next year if it cuts their employee healthcare costs by 3%.
- vjvjvjvjghv 1y agoIt seems they have decided it’s easier to save money by jacking up deductibles and copays.
- nradov 1y agoOf course. Those employers are (mostly) not running charities so they'll always attempt to shift as many healthcare costs to employees as they can without triggering tax penalties, or hurting recruiting and retention. This is one reason why society would be better off with eliminating special tax advantages for employer-sponsored health plans. Having employers act as payers and intermediaries reduces consumer choice and hides the true cost of health coverage.