HCR provision that helps stabalize cost for companies providing insurance for early retirees

[karynnj]

This is from a John Kerry op-ed.

It would be nice if many of the new provisions were explained like this - it would raise overall support

Our nation's early retirees are able to take advantage of a new program included in the health reform law designed to make retiree health insurance coverage more stable and affordable.

<snip>
Reinsurance is an insurance policy sold to insurance companies. It helps to protect insurers against the losses from enrollees who have major medical expenses such as a heart condition, cancer, and diabetes. Reinsurance is particularly helpful to small and mid-size insurers and employers that provide health coverage to a disproportionate share of sicker and more costly enrollees.

<snip>
Employers who participate in the program can receive a reinsurance reimbursement of up to 80 percent of catastrophic medical claims between $15,000 and $90,000 for their early retiree enrollees. The reimbursement is used to reduce the employer's health care costs and to lower premiums to retirees and their families. A new study from Hewitt Associates estimates that the program will reduce the cost of retiree coverage from 25 to 35 percent # anywhere from $2,000 to $3,000 per retiree, per year.

The Early Retiree Reinsurance Program will encourage employers to continue offering health coverage to their employees by providing immediate financial relief to cover those with costly medical expenses. The program ends on Jan. 1, 2014, when important insurance reforms go into effect nationwide that prevent older Americans from being charged exorbitant premiums and when early retirees will have access to additional coverage options in the health insurance exchanges.
http://www.gazettenet.com/2010/07/14/how-health-reform-aids-retirees?SESSd013c038a184cacfd07b8675a872ded2=gnews

[zipplewrath]

1. But he doesn't mention the other shoe

Which isn't uncommon of HCR boosters. My company, amongst others, had a very generous early retirement plan. However, to qualify for this subsidy, they had to REDUCE their benefits in certain areas. It's still a good plan, but it did encourage companies to alter their plans to conform to the dictates of this bill, and that included reduced benefits for some.

[daleanime]

2. The benefits seems to be geared toward companies....

maybe they will play nice and pass some on to us 'lesser people'. Sorry, the more I learn about the Insurance Company Benefit Bill, the more it upsets me.:banghead:

[karynnj]

6. The motivation is that it allows many companies to

afford being able to continue the insurance.

[daleanime]

7. Don't worry...

I'm sure that the companies will reap most of the benefits.

[dflprincess]

3. These lines say it all:

Reinsurance is an insurance policy sold to insurance companies. It helps to protect insurers against the losses from enrollees who have major medical expenses such as a heart condition, cancer, and diabetes. Reinsurance is particularly helpful to small and mid-size insurers and employers that provide health coverage to a disproportionate share of sicker and more costly enrollees.

I can appreciate it working for employers who self-insure but that is not something small employers do. This is just another part of the bailout for insurance companys and large companies.

Even with a discount of $3,000/year a retiree is still looking at a monthly premium of about $470/month. Better than nearly $720 it would be without the discount but still unaffordable for many.

Health insurance for more is not healthcare for all - it may not even be healthcare for more if a person can't afford to use their "coverage".

[karynnj]

5. It could make the difference between a small business

offering or not offering insurance. Kerry, in the past chaired the small business committee. In 2004, he spoke of companies where a costly illness of an employee caused their insurance to sky rocket leading to them dropping it.

What this actually does is to have a LARGE pool that will cover the catastrophic costs for all the companies. This reduces the risk for the insurance companies, which leads them to lower the price. It is good economics - and it benefits people as it lowers their rates. (The reason the total cost is cheaper is partially the reason that single payer is cheaper)

[dflprincess]

8. The question being, whether or not the insurance companies

pass the savings on to employers. The crooks are bound to find a way to keep the money for themselves.

The only employers who can be sure to benefit are those who self-insure and very few small employers can afford to do that. Small employers will have to trust the same conmen who have been stealing from all of us for years to be honest this time.

As far as the current high risk pools go. I checked at "healthcare".gov to see if my brother, who has lung cancer, could get something cheaper than the COBRA I'm currently paying for him. The cheapest policy I could find was $1100/month (single coverage) -more than twice the cost of his COBRA. And he would have to be without any insurance for 4 months to qualify - generally not a good thing when you need cancer treatments.

I'm not making any bets that the Insurance Profit Protection Act will really benefit anyone but the insurance executives in the country.

[daleanime]

9. That makes at least two of us...

so when can we start fixing this pile of....paperwork? (Fixing as in replacing it with single-payer!)O8)

[karynnj]

10. Every health care expert who spoke on the idea in 2004 called it the best

idea in anyone's plan. These were not insurance industry people. I would bet that there are safeguards on that.

[dflprincess]

11. There are work safety regulations too

they have to be enforced to work - and the same holds true for any regulations in the Insurance Profit Protection Act.

Meanwhile check out this thread: Obama Hires Fmr. Wellpoint Exec to Implement Health Care Law
at http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x8749680

I'm not feeling real confident that anything other than the mandatory premium payments will be enforced.

[ProSense]

4. Excellent.

Reinsurance was a key component of Kerry's health plan in 2004.

[eridani]

12. I get nothing but complete suckage from this. Fuck it.

If I give up my doctor, my former employer gets government money. Fuck that straight to hell.