We've written about the chilling effect that insurers hope to create by lowering commissions on Exchange-based business (or doing away with them altogether). Most recently, the Kentucky Department of Insurance weighed in, noting that this practice would be viewed as a violation of the insurance code.
Well, seems like the stakes are actually a bit higher:"(f) Broker compensation in a Federally-facilitated Exchange. A QHP issuer must pay the same broker compensation for QHPs offered through a Federally-facilitated Exchange that the QHP issuer pays for similar health plans offered in the State outside a Federally-facilitated Exchange." [emphasis in original]
That's from the Code of Federal Regulations as it pertains to the ACA. Seems pretty clear to me.
So then the question becomes: where do we go from here?
[Hat Tip: Sabrina Corlette]
■ Losses mounting:
"Obamacare may get more bad financial news next week, as more insurers are expected to report financial issues due to the healthcare law."
Not that this is a surprise to anyone that's been paying attenmtion; after all, Blue Cross/Shield of North Carolina has racked up over $400 million in losses in just the past 24 months. Tip of the iceberg, really.
■ In a bit of irony, the IRS is warning uninsured folks about tax scams [ed: no, not that tax scam!]:
"In some cases ... unscrupulous tax preparers tell clients to pay the penalties directly to them, and they keep the money"
Biggest surprise: that there are still uninsured folks. I thought the ObamaTax was supposed to end all that. Hunh.
■ From email this morning:
"Working to stem the spiraling costs of health care, improve health care outcomes and ensure the adequacy of quality services for its membership, nonprofit InHealth Mutual, Ohio’s only health insurance CO-OP, has reconfigured its provider network to trim health provider costs that fall significantly outside the average of its overall network."
Which is a fancy way of saying that their network's gone on a major diet, shedding 10 hospitals and a slew of physicians.
Look for this to continue as carriers look to cut mounting ACA-related claims (it's what happens when you delete underwriting and then pay folks to purchase insurance).
