Changes in health insurance coverage may bring about better healthcare coverage for consumers and, in some cases, could offer rebates to individuals who are paying premiums to specific health insurance companies. New guidelines for private insurance companies will require that at least 80% of the money they bring in from premium payments will be going directly to healthcare, as opposed to other areas.
Reports indicate that, in the past, health insurance companies were able to spend money that they earned from premiums on administrative costs, profits, and salaries or marketing. Yet, thanks to the Affordable Care Act, consumers are hoped to get more value out of their insurance policy since health insurance companies are going to be required to make better use of income from premiums.
Also, concerning rebates which consumers may have, any insurance company that has not followed these guidelines of devoting 80% to 85% to ensure that consumers have better care or that these funds are going towards improvement activities to offer a better quality of care, will have to reimburse consumers for not using premium funds correctly.
While there are some health insurance companies which may be able to modify these new qualifications for their particular situation, as some may have higher administrative costs or may offer limited coverage plans, many of the large health insurance providers who have, in the past, used premiums for costs unrelated to medical care coverage are now adjusting their practices concerning the use of premiums.
Again, certain states will have the opportunity to modify these requirements and will be given until 2014 before these changes are set, so insurance companies are working at the present time to adjust these new rules to fit their particular insurance program. However, one of the main purposes of these changes in premium usage is to simply provide more effective health insurance coverage for consumers who are, at times, burdened with high premium costs and poor medical care.