Study finds more competition could decrease insurance benefits prices
May 22, 2014
MD looks to purchase CT health insurance exchange technology
May 28, 2014
Show all

Insurers to receive federal funds for ACA losses

To try to keep the costs of health insurance premiums low during the next open enrollment period, the Obama administration has altered aspects of the Affordable Care Act to provide insurers with additional funds.

According to the Los Angeles Times, the move is to provide insurers with a backup in case they lose money due to the ACA. While the news source reported the majority of health insurance companies won’t need the funds within the next few years because there are provisions within the ACA to protect them, the additional money will help insurers provide ACA-compliant health plans that are still affordable. 

The Daily Mail, a news source in the U.K., reported the federal funds could end up covering a large percentage of insurers’ monetary shortfalls – between 50 and 80 percent – over three years. How it works, according to the Daily Mail, is that if insurers have claims that are more expensive than they previously anticipated, they would be able to receive money to cover half of the difference.

For public and state workers, this could help keep insurance benefits premiums low next year if they seek coverage through the exchanges.

Share this:
Erin Woulfe
Erin Woulfe
Erin Woulfe likes to write about things that matter. Keeping her finger on the pulse of what’s happening in the public sector world, she blogs about the latest legislative news and employee benefit trends that affect our school, city and county clients. She’s been with NIS since 2002. “I love connecting to our clients and providing them with the tools they need in order to administrate their plan,” says Erin. “Whether that be materials to educate their employees on certain benefits, how to effectively communicate change within an organization or just providing tips and how-to’s to help them make their job easier.”

Leave a Reply

Your email address will not be published. Required fields are marked *