Affordable Care Act: Digging the 85/15 rule much more now - Snowboarding Forum - Snowboard Enthusiast Forums
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post #1 of 4 (permalink) Old 08-01-2012, 07:46 AM Thread Starter
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Affordable Care Act: Digging the 85/15 rule much more now

For those that aren't hip to the ways of the Act, the 85/15 rule states that all insurance companies have to spend at least 85% of premium income specifically on healthcare, allowing 15% for administrative expenses, advertising, etc.

I'm getting a rebate because in my area, healthcare spending fell below the 85% mark .
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post #2 of 4 (permalink) Old 08-03-2012, 02:28 AM
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Originally Posted by Snowolf View Post
Yep! Despite what the Republicans want to claim, the ACA WILL drive down the cost of insurance for everyone and it will also lower the annual deficit. If they had their way and repealed "Obamacare", it would actually increase our deficit spending and I thought these guys were the ones who were so concerned with spending....
They increase taxes to fund the bill. If you increase taxes $1 trillion but then reduce the deficit by $80 billion, you can't really say your'e not spending extra, can you? You don't spend $1.2 trillion and save money. You just get us (taxpayers) to give more money.

According to CBO, the new repeal bill would reduce direct spending by $890 billion from 2013-2022, but also reduce tax revenue by $999 billion, leading to a net increase in the deficit of $109 billion.

So democrats are happy they are raising taxes by $1 trillion, and shaving the deficits by $80 billion? That's some fuzzy math.

Yes they are concerned with spending. Is Obamacare reducing the deficit with no additional taxes? The GOP could conceivably repeal Obamacare, raise taxes by $10 billion a year (drop in the bucket) and still come out ahead

Plus it is now only saving $84 billion, but the Supreme Court decision shaved off $289 billion in spending because of it's ruling on State implementation. So pre-Scotus the bill was set to increase the deficit by $200 billion.

CBO: Cost Of Obamacare Drops By $84B As A Result Of Supreme Court's Decision | ThinkProgress
– Federal spending during that period for Medicaid and CHIP is now projected to be $289 billion less than previously expected
ACA cannot take credit for that. ACA as written cost $289 billion more the day before the ruling, than after. SCOTUS cut a key portion of the bill. With the new calculations it is apparent the bill would have increased the deficits by at least $200 billion.

– The reductions in spending from lower Medicaid enrollment are expected to more than offset the increase in costs from greater participation in the exchanges.
The Supreme Court gutted the law, and now 3 million people will not be insured, but the Democrats are parading this CBO report around like some sort of victory, but now it is estimated an additional 3 million people will remain uninsured. It's like cutting of their nose to spite their face.

I'm happy for you Music Moves, everyone wants to save money.

But on the whole, premiums will probably still be increasing for most.

CBO now projects
that private health insurance premiums per enrollee will increase by 5.7 percent
per year, on average, between 2012 and 2022.
Which is in line with the premium increases from 2005-2010
between 2000 and 2005 but by 5.3 percent per
year, on average, between 2005 and 2010—and by only 3.7 percent in 2010.

I don't think the CBO has ever said premiums will drop. They've adjusted how much it will grow, but that's about it.

It's law now, and I say fuck it, why bother repealing it. It's in there. If the GOP win big, I'd rather see them fix it, then repeal it. Wherever this law takes us, it takes us.

Again, happy for you Music Moves, money in the pocket is money in the pocket. That's extra loot for some snow gear.
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post #3 of 4 (permalink) Old 08-03-2012, 02:34 AM
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Of the monstrosity that is ACA, the Medical Loss Ratio is one I am quite amicable towards. Overhead in other nations run 5-10%, so us being at 15-20% is not an unreasonable goal.
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