Friday, July 13, 2012

Affordable Care Act 80/20 Rule

Are you aware of this?   Insurance companies now have to spend at least 80% of every premium dollar on health care and quality improvements, not on CEO compensation.  If an insurance company spends less than 80% of premiums on medical care and quality (or less than 85% in the large group market, which is generally insurance provided through large employers), it must rebate the portion of premium dollars that exceeded this limit back to consumers.   I don't know about you, but I see this as a positive development, it sickens me to see Healthcare CEO's raking in million dollar compensation packages while there are millions without health insurance or adequate coverage.

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