Financial Impact – Health Reform, Premiums, Taxes & Fees
Major sources of deficit reduction include:
higher Medicare taxes on the wealthy;
new annual fees on health insurance providers;
revenue from mandate penalty payments;
and spending offsets such as a reduction in Medicare reimbursements to insurers and drug companies for private Medicare Advantage policies that the Government Accountability Office and Medicare Payment Advisory Commission found to be overpaid (relative to government Medicare);
and reductions in Medicare reimbursements to hospitals that do not meet standards of efficiency and care. Learn More Wikipedia
HHS will now pay 100 percent of claims costs between $45,000 and $250,000 — an increase from the previous rate of 80 percent. The Hill 6.17.2015
Resources & Links
States being forced to pick up ACA Insurer Fee CA Health Line 5.18.2015
Health Insurer Taxes Flyer Blue Shield Rev 5.2013
The limit of $6,350 for an Individual and $12,700 for a family out of pocket costs has been postponed for 1 year for some insurers. New York Times DOL FAQ’s Part of the justification is that some insurers have different parts of the coverage like Mental Health or Rx Drugs covered by other Insurance Companies. On the other hand CA has AB 639 pending to put limits in.
- Financial Impact of Health Care Reform on Premiums
- Proposition 45 Rate Regulation 2014 – Historical – Didn’t Pass
President Barack Obama’s proposed 2015 budget contains $5.5 billion slated to be paid to insurers who suffer significant losses on plans sold through the state and federal insurance exchanges. The risk-corridor program has been pilloried by congressional Republicans as a bailout for the insurance companies, even as experts have said it would produce a net surplus.
But the president’s budget also includes $5.5 billion in anticipated revenues from insurers who profit on plans sold through the government-run online marketplaces. That means Obama is counting on the risk-corridor program to be budget neutral, contrary to a Bloomberg News report that said the program would be a money-loser for the government. modernhealthcare.com