MLR Rebates Are Being Mailed.... Or Not

[Ann H]

I received notice from Health Net of AZ that they don't owe rebates. Part of the e-mail says:

• [FONT=&quot]For Individual business, Health Net of Arizona, Inc. and Health Net Life Insurance Company met or exceeded the 80 percent MLR standard. [/FONT]
• [FONT=&quot]For Large Group business, Health Net of Arizona, Inc. and Health Net Life Insurance Company met or exceeded the 85 percent MLR standard. [/FONT]
• [FONT=&quot]For Small Group business, Health Net of Arizona, Inc. and Health Net Life Insurance Company met or exceeded the 80 percent MLR standard. [/FONT]

[FONT=&quot]Health Net will not be sending any rebates this year as the MLR standards were met for 2011. More information and official MLR results can be found by clicking here.[/FONT]
​

[FONT=&quot]

I received another e-mail from Aetna saying they owe rebates worth 1/2 of a percent, in 28 pools out of 200 and they are as follows
[/FONT]

[FONT=&quot]In this first year of the MLR requirements, Aetna’s rebates represent about 0.5 percent of the premiums we collected. The rebates we are paying are modest, and most policyholders won’t receive a rebate at all.[/FONT]
​

Aetna Plans that are Scheduled to Receive Rebates Under Health Care Reform's Minimum Medical Loss Ratio (MLR) Requirements



Aetna is scheduled to mail rebates to policyholders of plans in the following pools by August 1, 2012. The pools are based upon the criteria specified by the government. In the Group market, plan sponsors are policyholders. In certain circumstances the government requires insurers to issue rebates to subscribers of Group plans rather than policyholders. In the Individual plan market, rebate payments will be made to the subscriber policyholder of the Individual plan.

Arizona IVL
Small Group HMO
Large Group HMO

Connecticut IVL Aetna Life Insurance Company

Delaware IVL Aetna Life Insurance Company

Kansas IVL Aetna Life Insurance Company

Maryland Small Group
Large Group
Large Group HMO
Aetna Life Insurance Company
HMO

Massachusetts Large Group HMO

Michigan IVL Aetna Life Insurance Company

Missouri Large Group Aetna Life Insurance Company

Nevada IVL Aetna Life Insurance Company

New York Small Group
Large Group HMO
Aetna Life Insurance Company

North Carolina IVL Aetna Life Insurance Company

Oklahoma Small Group HMO

Oregon Large Group Aetna Life Insurance Company

Pennsylvania IVL
IVL
Large Group Aetna Life Insurance Company
HMO
HMO

Tennessee IVL Aetna Life Insurance Company

Texas IVL Aetna Life Insurance Company

Virginia Large Group HMO

Washington, D.C. IVL
Small Group
Large Group


Sorry, the table didn't reproduce well here. You can see it at: Aetna plans that are scheduled to receive rebates under health care reform's minimum medical loss ratio

 

[HealthGuy]

Ohhhh .35 cent rebates coming, thanks Mama Obama

 

[Yagents]

So, I see agents being the only losers.

Premiums went higher for clients.
Clients received more of their premium dollar back in claims.
Profits at insurance companies rose along with their stock prices.
Doctors didn't see reimbursement cuts...
BUT
Commissions were cut in half for agents.

70/20/10 became 80/10/10

 

[Yagents]

I got my FIRST client call asking about his MLR refund. He thought he was getting a windfall. Told him to expect $0-$100. Anyone else get any calls??

Ehealth found 89% don't even know about any rebates that may or may not come. But 6% of those people will buy more insurance with the refund. Get that cross sell ready.

eHealthInsurance.com Investor Relations

 

[AllenChicago]

This stinks.. Insurance Company HATER Sebelius is requiring ALL insurance companies to send a letter to EVERY policyholder who is NOT getting an MLR Rebate, complete with wording advertising ObamaCare.

Electronic Code of Federal Regulations:

I can just see consumers all over America excitingly opening letters next month with the words "Information about Your Health Insurance Rebate" emblazoned across the bottom of the envelope.

For some insurers who barely met the MLR, the expense of sending out these letters (along with all the other mandated red tape) might just nudge them over the edge to MLR Non-Compliance in 2012. That is, unless they can find a way to save more money. Now I wonder where they would cut?

-ac

 

[somarco]

And each letter telling someone they DON'T get a refund probably costs at least a buck, if not $2+

 

[AllenChicago]

And each letter telling someone they DON'T get a refund probably costs at least a buck, if not $2+

That's at least another $9 million bucks in admin expenses for BCBS of Illinois. LOL, they probably don't pay that much in commissions in a given month.