I received a rebate check from my Healthcare provider this month. This was as a result of rules implemented by the Affordable Care Act. My Healthcare provider did not meet the threshold of paying out at least 80% of premiums collected on healthcare related costs in 2013. This "pay out cost" is referred to a "Medical Loss Ratio" which compares the premiums collected against the health care reimbursements paid out by the insurer. In fact, based on state by state calculations, they underpaid healthcare costs by 27.1% in the state I reside. So, the law (ACA) requires that the provider return the portion of what wasn't spent below the 80% ratio, in my state this would equate to a 7.1% rebate.
My take:
-Based on the ACA a 20% profit margin on premiums is accepctable...nice to know how the government has a mechanism to curb profit margins.
-This 2013 rebate check must have impacted Healthcare providers profit margins (in the past, this 27.1% would have gone to bonuses, dividend, etc.)
-By making healthcare coverage mandatory for all adults this 20% allowable profit margin is from a bigger pie (more people) therefore more dollars of profit.
As for my HSA (Health Savings Account) Mutual Fund:
I opened an HSA account with the Bruce Fund at the start of the year. The account has had a nice YTD return of 16.43%. With The Bruce Fund (BRUFX) an investor can view account information online, but transactions are by "snail mail" (not much of a draw back with an HSA account).
BRUFX
Comments
http://screencast.com/t/1bf1D4qtDEn2
Thank you for keeping us in the loop regarding your discoveries regarding HSA and ACA implications and interactions.
Regards,
Catch
Regards,
Ted
Chicago: Frank Sinatra:
http://waterquality.waterfiltercomparisons.com/chicago-il-drinking-water-quality-report/
They even found lead in the water. No surprise there with all the lead flying around.