Fix Health Care Policy

Side Effects: If You Like Your HSA, Get Ready to Lose It

Everyone remembers President Obama’s repeated promise, “If you like your health care plan, you’ll be able to keep your health care plan, period.” Unfortunately, Obamacare breaks this promise many times over. One way is through its medical loss ratio (MLR) requirement and the impact it will have on consumer-driven, high-deductible health plans (HDHP) that include health savings accounts (HSA) in individual and small group markets, a new report from Milliman shows.

The MLR requires that insurance companies spend 80 percent of revenue from premiums on medical claims or anything that improves the quality of health care. The additional 20 percent is for administrative and other non-medically related expenses. If the minimum of 80 percent is not met, the insurer must issue a rebate to the consumer.   (Read the rest on The Foundry…)

Tags: broken promises, health savings accounts, HSAs, Milliman, ObamaCare