Employers are going to have to pay out an estimated $1.1B of rebates to workers whose 2011...

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User 353732 Comments (3912)
 
The deliberate assault on new, small and start up businesses continues to increase in lethality. No wonder then that job formation is so pathetic and young adult underemployment and unemployment is at depression levels.
1 Aug 2012, 05:26 AM Reply Like

jpiretti Comments (707)
 
User 353732 I think your spending too much time digesting partisan rhetoric and not enough time reading policy white papers. The rebates are paid by the insurance companies and distributed by the employers. This is to counteract the fact that before the ACA, The 5 largest insurers (over 95% of private market) were diverting 13% of premiums into the executive bonus pool as opposed to benefits.http://bit.ly/N1qXwe As for your comments about depression level unemployment...If we never lost the roughly 700K police, fire and teachers, but added 900K we did in the first 3 years of the Bush43 administration, our U3 rate would now be under 6%.http://bit.ly/M3kvHb And as much as I hear the political rhetoric about the poor BLS reports of the last 3 months, we have averaged 150K private sectors jobs per month the last 6. Is that not a vast improvement from the 700K/month run rate lost 3 years ago? http://bit.ly/N1qZ7e
1 Aug 2012, 07:51 AM Reply Like

Tony Petroski Comments (6373)
 
jpiretti: I'm going to defend User 353732 as I think he spends the correct amount of time digesting partisan rhetoric. I always recommend less time reading policy white papers, especially if they originate from the Ivy League or any Climate Change Department.

On the other hand, you've done your fair share of white papering. I fear you're papering over the fact that this whole exercise starting to roll out today is designed to cripple all "private" insurers (granted, businesses as heavily regulated as health insurers are little more than arms of the State already) so we can get on with the important business of socializing any remain private entities--they didn't let on with that in any of the white papers--you have to be a member of the vast right-wing conspiracy to be able to read the stitches on that knuckleball.

"If you think healthcare is expensive now, wait until it's free.
-- Yogi Freeh (from his recent report on health care)

"Who thought it was a good idea for my neighbor to pay for my annual checkup?
-- P.T. Berra (from the movie "A Sucker Born Every Minute)

"We mocked the healthcare companies when their "administration cost" hit 20%. Now that healthcare is free, administration has passed 80%, but the benefits and pension plans are good."
-- Anonymous worker in 2019
1 Aug 2012, 04:55 PM Reply Like

madav1138 Comments (2083)
 
I got a notice about that in the mail but have no idea what it means even after reading the explanation. It says something about it going back to the employer, not me, or I have to go to my employer to redeem it, something, I have no idea.

But this is wrong, the letter did say the insurance company was giving the money back, not the employer I think, will have to read it again.
1 Aug 2012, 05:28 AM Reply Like

Christopher Cowan Comments (101)
 
I don't understand it but it is wrong..good post. The cost of healthcare can no longer include administrative fees over 20%. If it does then that money will be given back.
1 Aug 2012, 05:42 AM Reply Like

ron284 Comments (188)
 
It's a small gesture, but the biggest problem is the ever increasing cost of the care that makes up the 80%. People are going to have to ration their own health care the more the premiums rise.
1 Aug 2012, 07:34 AM Reply Like

youngman442002 Comments (4972)
 
and the companies now will meet that 20% by cutting your access to medical care....less trips to a doctor..less management fees...it does not matter if you are sick or not...government regulations have a cost and an effect...your life will be shorter
1 Aug 2012, 07:49 AM Reply Like

jpiretti Comments (707)
 
youngman442002 I am truly confused by your comment...by forcing insurance companies to spend more premium dollars on actual benefits...this will reduce HC access/viability? Or are you saying the private industry will do whatever it can to divert the 20%+ of premium dollars to executive/shareholder distribution. Is that not like admitting that there is no free market solution to decreased costs and increased access?
1 Aug 2012, 08:22 AM Reply Like

youngman442002 Comments (4972)
 
You are assuming that insurance companies spend money just to spend money.....do you think with Obamacare that Insurance companies will have to fill out more forms or less???? I think more....many more...so if the Obamacare says no more than 20%...what can you cut....access...you can´t raise rates....and you can´t go past the 20%...envision the USPS in 10 years....broke and terrible service...
1 Aug 2012, 08:46 AM Reply Like

jpiretti Comments (707)
 
Insurance companies are pass through service entities...premium dollars in, benefit dollars out, with a 2-2.5 administration fee. Where does the other 20-25% go (80% medical loss ratio is now the minimum)...3% dividends...5% advertisement budget..and...hold your breath...the five largest private providers (95%+ of market) dedicate roughly 13% of premium dollars to the executive bonus pool.http://bit.ly/OnShqF Maybe the executives, who do nothing in a pass through service industry will have to reduce that compensation, or maybe they will try to reduce the dividend. That is a fight I would like to see the shareholders wage. You can go back as far as you want and look at the 10K's, 10Q's of all these private insurers and admin costs have remained constant at 2-2.5%. I think your standing on a whale fishing for minnows with your concern for the additional admin costs.
1 Aug 2012, 09:08 AM Reply Like

ocartaya Comments (2)
 
Economics will not determine your life expectancy and neither will rules or regulations. The real determinant of your life expectancy is your genes. If you get to be 65 without any degenerative disorders you will live a long life, longer than average expectancy. On the other hand if you get to be 65 and have a half dozen of chronic degenerative disorders on board you will likely not live to the average life expectancy for age. It is as simple as that. Of course, accidents do happen and even the healthiest person may be killed prematurely in a car crash.
1 Aug 2012, 11:56 AM Reply Like

madav1138 Comments (2083)
 
and diet. I am amazed at the sheer ignorance of americans who do not consider a good diet as essential for living disease free. I shame our health care industry for equally ignoring the subject, I have never had a doctor ask me about what I am eating, nor share any information as to what is good for me to eat, what foods prevent cancer, ect. Its shameful.
1 Aug 2012, 04:48 PM Reply Like

radicall Comments (534)
 
The article is incorrect INSURANCE companies have to spend 80-85% of your premium on providing healthcare to subscribers. If they only need to spend 70% of total premiums collected - they will return the money to subscribers.

http://nyti.ms/R8Eg22
1 Aug 2012, 12:03 PM Reply Like