Wednesday, November 27, 2013

There Was Another Pre-Holiday Release of Regulations on Obamacare - Better Insurer Bailout Terms

Undoubtedly an appeasement from the Administration to insurers for the proposed 'fix' that will allow some individuals to keep their policies and not be forced into the Exchanges (which exacerbates adverse selection).

This is from Caroline Humer at Reuters:  (Hat tip: Dr. Ryan Kennedy)  
The U.S. government has issued a proposal that would likely increase risk payments in 2014 to health insurers offering plans on the Obamacare exchanges after the companies complained a recent policy change allowing people to keep their insurance policies had changed the financial equation.   
The rule, published on Monday in the Federal Register, lowered the threshold at which risk payments kick in for the sickest health plan members. The government proposed paying insurers 80 percent of claims greater than $45,000 in 2014. Previously the lower limit was $60,000. ...
Jack and Joe discussed this and lamented their excessive consumption of cinnamon rolls this morning in this clip:

The Covered California Numbers mentioned in this clip can be found here.