Quote taken from another post by a gentleman named chad: Ive been advising clients that the rates on the new health care reform policies would likely stay the same or decrease slightly in the coming years. Insurance companies hate risk... So they factor in a higher cost to protect themselves from financial risk. These new policies had never been sold prior to this year so there were a lot of unknowns about what the usage would look like. Now weve got several months of claims under our belt so the carriers can make better rate decisions going forward. Also at play here is the Mandated Loss Ratio. If the insurance companies dont spend a certain percentage of premium dollars on claims, they have to refund the excess to the policyholder. That helps keep costs lower since the carriers cant charge too high of a rate beyond what they expect their claims costs to be. In the end, insurance companies wont drive the rates higher or lower anyway, since premium rates are a direct reflection of the cost to provide medical services to policyholders. As you said, Arkansas is very fortunate to have good leadership as well as good insurance companies that have never taken advantage of their members by charging rates far beyond the cost to provide care.
Posted on: Wed, 27 Aug 2014 14:41:32 +0000
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