Why would our health insurance premium go DOWN???

[Holly_Hobby]

My husband is an early retired, disabled union guy. We've been paying $1,211/month for his union health insurance, for an 80/20% PPO, which is great coverage. We got a letter today stating that our new premium for January is now $768. Quite a drop.

The new coverage will cost us a bit more out of pocket, but why would they drop our premiums by such a large amount? Is this something Obama did?

Thanks, I just can't figure it out.

[djean111]

1. Maybe they got hit with the 80/20 rule in ACA?

I know some people got premium refunds because of that.
Anyway, that's great news! But read the fine print.......

[Holly_Hobby]

2. What is the 80/20 rule? Thanks n/t

[djean111]

5. An insurance company is supposed to spend at least 80% of the premiums they collect

on the health care they allow you to receive. Their overhead - salaries and such - are now limited to 20%. By contrast, medicare has an overhead of 3%. If they don't spend 80% allowing health care, they are to refund the difference, and I read about that happening for some people.
That's my understanding, anyway. Someone please correct me or explain better if I don't have the gist of it right, please!
Imagine how much would be saved if we all were on medicare and also could negotiate drug costs or import drugs from other countries.

[Roselma]

3. An important detail would be

what your deductible(s) and copays are. Also, is the annual maximum out-of-pocket much higher. Another consideration is whether your policy last year was subject to premium rebate which is being applied to this year's premiums. My son's company got a huge rebate check because their insurance company didn't stay within the guidelines. As a result, the company applied the rebate toward paying more of this year's premiums. It saves my son nearly $30/week in premiums.

[jberryhill]

4. Simple

If you are the picture of health, that picture is worth a thousand words, and words are cheap.