Nearly 13 million Americans have gotten, or will soon be getting, rebates from their health insurance companies

This is because of a provision in the Affordable Care Act that’s supposed to force insurance companies to run better.

The Cost of Private Health Insurance - Rebate or Increase

But while the idea of getting a check from your health insurance company may sound great, some economists worry this rule could actually make health insurance more expensive.

This provision requires that health insurance companies spend at least 80 percent of premiums on health care. In other words, of the money we pay them for our health insurance, at least 80 percent has to be spent on actual health care.

The Affordable Care Act puts in place strong consumer protections, provides new coverage options, and gives you the tools you need to make informed choices about your health.

Understanding the US Health care Law – Affordable Care Act

Those that are on an employee benefit plan, a typical employee will pay $2,596 of the average plan of $11,507 total annual cost. The bad news: Employers will ask workers to shoulder more of the burden, again.

More employees are being offered so-called consumer-driven health plans.

Those plans typically have a deductible of $1,000 or more and are linked to a financial account that employees can use to pay for medical expenses, like a Health Savings Account.

Towers Watson Projects Employer Health Care Costs Will Increase 5.3% in 2013. Details from The 2012 Towers Watson Health Care Changes Ahead Survey

More than three-quarters (77%) view health care benefits as core to their employee value proposition over the next several years, and more than one-third of companies will examine their health care benefits in a total rewards framework by 2013. Another 39% are considering doing so by 2014 or 2015.

The strong growth of account-based health plans (ABHPs)** is expected to continue. By 2015, 80% of employers plan to offer an ABHP, up from 61% in 2013. The enrollment within ABHPs continues to increase significantly, moving from single-digit numbers in 2006 to an expected 30% for employers offering these plans in 2013.

Health care delivery continues to evolve, which is leading to an acceleration in the use of telemedicine services. Seventeen percent plan to offer telemedicine by 2013 and another 27% are considering offering it by 2014 or 2015.

* Excise tax: According to the Patient Protection and Affordable Care Act, the federal government will impose an excise tax of 40% on insurers of employer-sponsored health plans, including self-insured employers, with an aggregate value of more than $10,200 for individual coverage and $27,500 for family coverage.

** Account-based health plans: A plan with a deductible offered together with a personal account (health savings account or health reimbursement arrangement) that can be used to pay a portion of the medical expense not paid by the plan.

Account-based health plans typically include decision support tools that help consumers better manage their health, health care, and medical spending.

Barriers to Lower Health Care Costs for Workers and Employers

 

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