Payers Await Details on Employer Mandate Delay
A surprise announcement from the White House puts a key provision of the healthcare reform law on hold, and leaves health plans tending to business while they wait for details.
The Obama administration set of some fireworks of its own last week, announcing unexpectedly on July 3 that there will be a one-year delay, until 2015, of a key provision of the Patient Protection and Affordable Care Act that requires mid-sized and large employers to provide health insurance for their workers or pay a fine.
Health insurers are uncertain how the delay will affect them, and await detailed guidance on the how reporting requirements will now be implemented. More information is expected this week according to the Treasury Department.
In the meantime, health insurers are going about their business. Here’s a round-up of health plan news since the Independence Day holiday:
Blue Cross Blue Shield Plan Administrative Costs Increased in 2012
The PPACA makes streamlining administrative costs a high priority for health plans. Administrative expenses of BCBS plans were 8.9% of premiums in 2012 and grew by 5.1% per member, according to the 2013 Sherlock Expense Evaluation Report or SEER.
The increase was reduced to 3.8% after excluding the effects of a product mix change that favored Medicare Advantage products. Blue plans reported median total administrative expenses of $29.25 per member per month.
- As Medicare Advantage Cuts Loom, Disagreement Over Program's Stability
- Medicare Advantage Carriers See 'No Choice' But to Accept Cuts
- Physicians to Appeal 'Docs v. Glocks' Ruling in FL
- Centralizing the Revenue Cycle Protects the Bottom Line
- CA Fines 8 Hospitals for Medical Errors
- 3 Management Lessons from a Supermarket Debacle
- Doctors Feel Pressure to Accept Risk-based Reimbursement
- Employers Weigh Risks, Benefits of Private Exchanges
- Surgical Checklists Unused in 10% of Hospitals, CMS Data Shows
- Revenue Cycles Get a Boost from Simple JPEG Files