We are writing to let you know that on July 16, 2012, Group Health Incorporated (GHI), an EmblemHealth company, will be submitting a request to the New York State Department of Financial Services (NYSDFS) for a change to the premium rate that will be effective on your 2013 policy renewal date. If approved, a proposed 24.5% increase will be applied to the approved 2012 renewal rate that has either gone into effect, or will go into effect, during 2012 for your policy.
It then proceeded to inform me that the rate increase could be approved, modified or denied by the Superintendent of Financial Services. In light of the letter I received today, I would certainly hope that the request, at the very least, is modified significantly, if not outright denied.
Because I received a letter a rebate check in the mail today.
This letter, dated 7/27/2012, discussed the "Medical Loss Ratio" and the "80/20 rule." Then came the final paragraph.
What the Medical Loss Ratio Rule Means to You
The Medical Loss Ratio rule is calculated on a State by State basis. In New York, GHI did not meet the Medical Loss Ratio standard. In 2011, GHI spent only 81 percent of a total $70,837,138 in premium dollars on health care and activities to improve health care quality. Since it missed the 82 percent / 18 percent target in your State by 1 percent of premiums it received, GHI must rebate 1 percent of your health insurance premiums. We are required to provide this rebate to you by August 1, 2012, or apply this rebate to your premium that is due on or after August 1, 2012.
We are enclosing a check.
The check I received was for $23.94, but my insurance company wants to increase my premium by nearly one-quarter. Try and figure that one out. I know that I certainly can't. Are they trying to make it so that they have to cut rebate checks again next year?
I can only shudder to think what would happen if the Affordable Care Act wasn't in place. $23.94 isn't a lot, but it's money in my pocket and not the insurance company's. For me, it's just another reminder why I so strongly support President Obama's re-election.