ACA rates and COVID

[USGrant1962]

In the vein of auto insurance price reductions, what is the prognosis on getting a break on ACA insurance. Clearly Medicare will get slammed by COVID-19 due to the demographics of the hospitalizations (not to mention the evaporation of payroll tax income). But cancellation of elective procedures and even the widely-reported fear-based delay of real medical care has cut medical spending sharply. Hospitals across the country are doing layoffs. Further, ACA has the 80% medical loss ratio regulation meaning the insurance companies cannot pocket the unspent premiums.

So are we going to see health insurance rebates like the car insurance rebates? Or will it somehow be reflected in next year's premiums? Has anyone seen an informed discussion somewhere?

My BCBS plan "generously" allowed deferment of payments

 

[RetiredAt55.5]

I was wondering about that too.

Given subsidies, that would make rebates more complicated, especially since you settle up on the subsidy amount at tax time.

My BCBS insurance company happens to be a 'not for profit', so they have to do something in general.

 

[audreyh1]

Well, I guess that depends on how many Covid-19 cases they have to cover during the year.

 

[Spock]

I've been getting "sorry we charged too much" credits on ACA policies the last 2 years. This year, the credits will pay all of my premiums through October. So... based on the projections in the OP... the credits should cover the full year.

 

[street]

^ yep and I would guess that number to be very small in the big picture.

 

[USGrant1962]

I did find this KFF article from a month ago that suggests non-Medicare spending will likely be down this year, and perhaps higher next year due to deferred treatments.

https://www.healthsystemtracker.org/brief/how-health-costs-might-change-with-covid-19/

 

[MichaelB]

ACA rules for individual policies require the insurer spend 80% of the premium on health care, if not, it must rebate the underspending to the customers.