What You Aren’t Going to Be Getting from HNE!
Posted on July 12, 2012
You Won’t Be Getting an MLR Rebate from HNE!
Both the 2010 Affordable Care Act (ACA) and state law require that health insurers must spend a certain percent of premium dollars on medical costs (referred to as Medical Loss Ratio ~ MLR) and activities to improve health care services for individuals and small groups (under 50 eligible employees). If not, the health insurer must rebate part of the difference to businesses and individual policyholders. Under the ACA, the MLR requirement is 80%; under Massachusetts law, it is 88%.
On June 28th, the State Division of Insurance released the news that over 57 million dollars will be paid out to 50,000 individual policyholders and 50,000 small businesses by five Massachusetts-based health insurers for policies sold or renewed on or after January 1, 2011. The rebates are worth $10 million more than the insurers initially estimated and reported to state insurance regulators.
Again, HNE IS NOT one of the five.
So What Does This Mean to You?
HNE is Accountable– Our guiding principle is Personal, Accountable Relationships. We believe premium dollars should cover employers and their employees, not inflated administrative costs.
HNE is Efficient- Our mission is to provide Outstanding Service and Deliver Superior Value. We know health care costs can be a substantial part of business expenses. By planning our health care cost strategy efficiently and accurately, our calculations for our MLRs stay on target and our business partners keep more money in their pockets, not ours.
HNE is a Responsible Corporate Citizen- Our vision is to become the most trusted and valued health plan in the communities we serve. Our members receive the quality of care they deserve, award-winning customer service, and affordable premiums all year long – again, without paying out more than is needed.
In addition, most rebates paid out are taxable, and require business owners to make adjustments in either lower premium adjustments or cash payouts. Distributing the rebates and processing these changes imposes additional costs and administrative burden. With HNE as a business partner, we’ll always do our best to keep things simple and hassle free for our stakeholders.
Controlling Cost and Containment for Your Business.
We Don’t Just Say It…We Do It!
For more information on MLR and how it affects your business, call your HNE Sales representative today.
