Tuesday, March 23, 2010

The "ensuring value for premium payments" provision

In the health care bill, there is a provision called “ENSURING VALUE FOR PREMIUM PAYMENTS”, which requires plans in the individual and small group market to spend 80 percent of premium dollars on medical services. According to the website PatientPowerNow.org:
Depending on how actuarial value is calculated, HSA-qualified plans (those with high deductibles) may become illegal. This is especially true if the calculation does not include contributions to an HSA.
But I thought if I liked my plan that I would be able to keep it?

In addition, the bill requires that new private plans exclude preventive services from deductibles. So even if I am lucky enough to keep my high deductible plan, I can only keep it until the moment I have to change insurance plans, at which time I will be forced to buy one of the more expensive, government approved plans.

Let freedom ring!

[Update]
Don't you just love this idea that a politician is capable of "ensuring value" based on a mathematical formula. The applications for this idea are endless.

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