Fla. seeks delay for insurers
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WASHINGTON - Florida is asking the federal government to delay a requirement that health insurers use at least 80 cents of every dollar in premium money to pay for medical treatment, a move that could deny customers more than $170 million in rebates.
If federal officials give the state a waiver granting a three-year delay, insurance companies will get to keep the money they would otherwise have to pay in rebates and could spend it on marketing, salaries, commissions to brokers and other administrative costs.
The Health and Human Services Department could rule on the waiver request as early as next month.
Consumer groups oppose the request, which applies only to policies covering people who buy insurance on their own.
There are conflicting estimates on how many Floridians are covered through the individual market and therefore could be eligible for rebates.
In its waiver application, the state said about 842,252 people are covered through the individual market. But the number could be more than 2 million, based on census data.
The insurance industry said some insurers will leave Florida if the waiver isn't granted. Independent insurance agents already are reporting layoffs as insurers cut commissions to meet the new requirement.
Florida is one of 17 states seeking a waiver to the insurance spending requirement, part of the sweeping health care reform bill President Barack Obama signed into law in March last year.
Insurers that don't spend at least 80 percent of the premiums they collect on medical care, starting this year, must pay policy holders the difference as rebates.
Those rebates would go out next year, based on 2011 spending.
The federal law trumps Florida law, which allows insurers to spend as little as 65 percent on medical treatment, depending on the plan.
To avoid paying rebates, insurers across the country are reducing commissions paid to brokers and lowering premiums, according to the Government Accountability Office.
Golden Rule Health Insurance Preffered Providors - News
The 12 are: American Republic Insurance, AvMed, Connecticut General Life Insurance, Coventry Health Plan of Florida, Freedom Life Insurance, Golden Rule Insurance, Humana Health Insurance, John Alden Life Insurance, Mega Life & Health Insurance,
Money Savvy ยป Financial planning tip: Make sure your health care ...
(ARA) – Are you thinking about a major life or career change, such as early retirement or starting your own business? One of your major considerations should be health care costs. Can you obtain private insurance for you and your family? What happens if you don’t have coverage and get sick or injured? If you purchase coverage and don’t use it, are you just wasting money?
If you think that rising health care costs down the road might put a strain on you and your family, you’re not alone: 50 percent of today’s workers are “not too” or “not at all” confident about having enough money to pay for their medical expenses in retirement, according to the 2011 Retirement Confidence Survey by the Employee Benefits Research Institute.
“Smart financial planning should include smart health care planning, so you have the security of knowing you and your family will have health care coverage no matter where life takes you,” says Richard A. Collins, CEO of UnitedHealthcare’s Golden Rule Insurance Company.
“As you prepare for the future, whether that involves planning an early retirement, leveraging your skills to launch a new business or making sure your family is protected in uncertain economic times, it’s important to have access to health insurance that helps you live the life you want without putting your future health and insurability at risk.”
But not everyone knows where to begin when shopping for the right coverage, and there’s no one-size-fits-all solution when it comes to health insurance. As you plan for your future coverage needs, be sure to take into account a few important considerations that could have long-term effects on your future health and finances:
* Be realistic about your financial situation, and make a careful assessment of what you expect your disposable income to be in the future. By taking stock of your income, spending habits and financial obligations, you can more accurately begin to budget for your health care needs and avoid dipping into your savings.