LOL
Lv 7
LOL asked in Politics & GovernmentPolitics · 9 years ago

Does Obamacare have a provision to cap insurance company profits?

If we are forced under threat of tax penalty to buy insurance shouldn't there be a limit to how much money the insurance companies can make? If Obamacare really is about helping the less fortunate and not about making rich people richer it seems like it would be appropriate.

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  • Anonymous
    9 years ago
    Favorite Answer

    Yes, so to speak. Policyholders already enjoying the benefits of the Affordable Care Act will be getting rebate checks, as soon as August.

    “An estimated $1.3 billion will be doled out to individuals and small businesses under a clause in the Affordable Care Act,” according to Business Insider.

    The Obamacare rebate checks are part of a provision in the health care law that requires insurance companies to use 80 percent of collected premiums on medical services. If they don’t, they have to send rebates to policyholders for the difference.

    Obamacare support may rise when health insurance rebate checks arrive

    http://www.indybay.org/newsitems/2012/06/29/187165...

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  • Anonymous
    4 years ago

    I recommend that you visit this web site where onel can get quotes from the best companies: http://insure-cheap.info/index.html?src=2YAesycgI6...

    RE :Does Obamacare have a provision to cap insurance company profits?

    If we are forced under threat of tax penalty to buy insurance shouldn't there be a limit to how much money the insurance companies can make? If Obamacare really is about helping the less fortunate and not about making rich people richer it seems like it would be appropriate.

    Follow 14 answers

  • Anonymous
    7 years ago

    Does Obamacare have a provision to cap insurance company profits?

    Looking 4 auto insurance companies? one of the top to get best auto insurance company, rates and prices is: http://www.cheapinsurance4auto.info/

  • Anonymous
    9 years ago

    One of the provisions in the Patient Protection and Affordable Care Act (a.k.a ACA, a.k.a. Health Reform, a.k.a. Obamacare) is that it limits the profits of health insurance companies. The ACA imposes a minimum medical loss ratio (MLR) on all insurers. The MLR is the amount of money spent on covered person medical care divided by the total revenue received through premiums. There is some debate of what constitutes ‘medical care’ (e.g., do investments in electronic health records count as medical care?), but insurer profits certainly are non-medical.

    The ACA requires health insurers in the individual and small group market to spend 80 percent of their premiums (after subtracting taxes and regulatory fees) on medical costs. The corresponding figure for large groups is 85 percent. According to a recent Kaiser tracking poll, 60 percent of the public views the MLR concept favorably, although only 38 percent was aware that the provision is in the ACA. Insurance brokers may be getting squeezed for insurers to meet this amount.

    Even though the MLR is a national law, it may not apply in your state.

    Why? Because many States are petitioning for a waiver. HHS is currently reviewing applications from six states: Florida, Kansas, Michigan, Texas, Oklahoma and North Carolina. According to The National Association of State Budget Officers, HHS has granted waivers to seven states: Maine, New Hampshire, Kentucky, Nevada, Iowa, Georgia and Wisconsin. The department has denied them to Delaware and North Dakota.

    Why did these States receive waivers? For a variety of reasons, but one of the reasons is due to the fact that some states have a less competitive medical market. Maine, for instance, requested a MLR of 65%. The reason was that State only has two large commercial insurers, Anthem Blue Cross Blue Shield (with 49% of the market) and MEGA Life and Health Insurance Company (with 33% of the market). A public-private partnership, DirigoChoice, makes up most of the rest of the market. Three HMO’s have less than 1% of the market combined between them. To avoid the case where a large insurer would leave the market due to minimum MLR requirements and create a near monopoly, HHS decided to approve Maine’s request.

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  • Tootoy
    Lv 7
    9 years ago

    Obamacare requires insurance companies to spend at least 80% of their revenue directly for health care. If they don't they must reimburse the insureds for the difference. Example: For every dollar they take, they smust spend 80 cents. If they spent only 75 cents, they must return the 5 cents to their clients.

    I was the recipient recently of a $254 rebate from my insurance company.

  • Anonymous
    5 years ago

    Really have you seen the new tax increase with Obummercare? Corporate tax increase that has companies moving overseas Rates for income tax increase that is mind boggling Taxing your home once you sell it at 3.8% 100,000 dollar home pays 3800 in new taxes inhertance tax from 15% raised to 55% This health care is more than just health care please wake up!!!! Quote from Salinsky's book to control the people you must control their health care We are on our way. 10 years or less 1 payor system,that rations health care look at Cannada and Europe and you will see it. Please don't take my word for it... see it and read it for yourself. My sister lives in Cannada needed wrist surgery,had to wait almost a year to be scheduled,got a call as to what dr. would be performing the surgery,the hospital,date and time. If she could not make that time or did not want that dr or hospital she is thrown back into the system and wait... ask for this type of health care and you will get it. Be careful what you wish for you just might get it.

  • There is not limit how much insurance companies can profit.

    The law does state they have to spend 80% of it on patient care.

  • 9 years ago

    Actually, it does. The ACA caps the company's profit margin at 15% in the large group market and 20% in the small group and individual markets.

  • Anonymous
    9 years ago

    20 % starting in 2014 . The insurance companies are already saying that CEO bonuses are part of health care costs .

  • Anonymous
    9 years ago

    yes,

    if the insurance company profits to much and you do not get any medical treatment you will receive a reimbursement.

    Like Obama said in his victory speech, "Less money for CEO bonuses and more money on your health care"

    OBAMA PWNS

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