Yesterday I received a notice in the mail. Apparently, Obamacare be beri beri good to me. My kindly insurance carrier is sending me government has forced my insurer to send me a rebate on 0.5% of my premiums from last year. That should be about, let's see, $32.50.
I really like getting money back from anyone. I suppose I should be pleased. But I'm not, I'm offended.
It seems that the ACA has set what is considered to be a 'reasonable' amount for spending on administrative costs and the coverage of medical fees. That split is 15% for administration, 85% for fees and services. My carrier hit only 84.5% on the fees and services portion, which means I get .5% back.
What kind of system allows the government to tell companies how much is reasonable for administration? In some regions of the country, those costs could be very low and in others they could be very high. So the government now says no matter where you live, those splits should all be the same. Does this strike anybody as remarkably inefficient at the core? A vast waste of resources, which could be solved by getting the government out of setting prices and managing costs, and allowing the market to play a role by having firms compete over state lines.
I'd also like to point out that last year I received a notice about my Flex Spending. It seems the ACA now requires I have a prescription to use Flex Spending for OTC products such as antacids and ibuprofen. Interestingly, I can still use my Flex Spending for vision-related goods like glasses and contacts without a prescription. Notice something odd here? I can only get my glasses or contacts with a prescription. Yet the government wouldn't require the prescription for payment. The all-knowing and forever wise arbiter of my health care needs.
Let's not forget the cost of mailing me these notes, which increases administrative costs. Time spent composing, typing, printing, these letters? 5 working hours at $50/hour or $250. Paper costs for 10mm insured? $20,000. Cost of postage to 10mm insured people? $4,000,000. Sure, it's a drop in the overall bucket, but reduces my $32.50 to $32.00. Again, inefficient and a waste of resources. Thank you, Mr. President. Doesn't look, sound or smell like a permanent job for anyone. Nice 'focus'.
