As we've previously discussed, the opportunity to choose an "early renewal" date is pretty attractive for healthier (and/or younger) groups. Likewise, less healthy (and/or "older") groups may see some substantial benefit from the implementation of Community Rating (CR); one of mine is scheduled to take a 30% decrease next year.
So one might believe that it's all to the good for those groups who look to benefit from CR.
But maybe not.
From email this morning:
"In regards to groups that will benefit from the community rates and want to change to a 1/1/14 renewal. Please keep in mind that these are projections and they will be moved to an ACA plan and we do not know what that plan will look like. The projections shown do not include essential benefits, which will be included on all ACA plans. It is thought that essential benefits will add approximately 8-10% onto the premium."
What this means is that:
1 - Contra The President, these groups will not be able to "keep their current coverage"
2 - At least some (and perhaps most or all) of the anticipated savings from CR will be eaten up by the new Minimum Essential Benefits
3 - Groups that currently enjoy their Health Savings Account contributions are out of luck
4 - The whole "early renewal" issue does not take into account "regular" renewals based on medical inflation, claims and the like
Easy come, easy go.
[Hat Tip: FoIB Beth D]
So one might believe that it's all to the good for those groups who look to benefit from CR.
But maybe not.
From email this morning:
"In regards to groups that will benefit from the community rates and want to change to a 1/1/14 renewal. Please keep in mind that these are projections and they will be moved to an ACA plan and we do not know what that plan will look like. The projections shown do not include essential benefits, which will be included on all ACA plans. It is thought that essential benefits will add approximately 8-10% onto the premium."
What this means is that:
1 - Contra The President, these groups will not be able to "keep their current coverage"
2 - At least some (and perhaps most or all) of the anticipated savings from CR will be eaten up by the new Minimum Essential Benefits
3 - Groups that currently enjoy their Health Savings Account contributions are out of luck
4 - The whole "early renewal" issue does not take into account "regular" renewals based on medical inflation, claims and the like
Easy come, easy go.
[Hat Tip: FoIB Beth D]
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