In an attempt to make employee benefits and insurance costs in general more affordable for the average American, government officials have begun negotiating with insurers to establish premiums at levels that are reasonably priced.
According to political news website The Hill, Department of Health and Human Services Secretary Kathleen Sebelius is in the midst of talks with insurers, haggling over what rates will be for customers who purchase coverage through the marketplaces that are being set up at the state level.
"We intend to do rate negotiation and make sure that the plans are going to offer consumers the best possible choices, as opposed to the law in some states," said Sebelius. "[This is] where a company comes in with the plan rates and you take what you get."
Representatives for HHS told The Hill that the government isn't telling insurers how much they should charge in premiums but rather offering guidelines on the best method to pursue after providing them with information on what the going price is for similar health plans.
The moves made by HHS may come as a surprise to individuals who have been given indications that these types of cost negotiations need not be necessary, seeing as the government has stated consumers have saved billions of dollars as a direct result of the ACA. HHS recently pointed out that nearly 78 million consumers saved an estimated $3.5 billion on up-front premiums thanks to the health reform law last year. Health officials say consumers have seen these savings through rebates provided by insurers if their operational expenses weren't mostly devoted to patient care and quality improvement. These payments have or will be made to customers either through a check in the mail, a reimbursement to their credit card or a reduction in future premium costs.
