SEE HOW MUCH YOUR STATE WILL RECEIVE HERE
Washington, D.C. – The Kaiser Family Foundation reported today that 15.8 million people will receive an estimated $1.34 billion in rebates for their 2011 plan year under the medical loss ratio (MLR) provision, or the 80/20 rule, included in the Affordable Care Act. Rebates represent only part of the consumer benefit from the MLR. Other insurers have reduced premiums to bring their spending into compliance with the new Obamacare standards for giving consumers value for their premium dollars.
These benefits will be stripped away if the U.S. Supreme Court overturns the health care law or the Republicans repeal it. Within a few hours of the Kaiser report’s release, America’s Health Insurance Plans (AHIP), the industry lobby group in Washington, issued a statement attacking the provision. Here is a statement from Ethan Rome, executive director of Health Care for America Now:
“This is a huge victory for consumers. For far too long, health insurance companies have been ripping off consumers, and Obamacare finally put a stop to that. The rebate money will come to consumers from insurance companies that spent too little on medical care and too much on profit, red tape and bloated CEO pay. These are concrete benefits and savings for consumers desperate for relief from crushing health insurance and medical costs.
“AHIP’s objection to the 80/20 rule is grotesque and self-serving. It is no surprise that they would rather keep the money than obey the law.
“Insurance brokers and agents are meeting this week to lobby Congress to weaken the law so consumers get nothing and insurers keep the money. Congress should tell the insurance industry that there’s a new sheriff in town and they’re just going to have to get used to it.”
You can see the Kaiser report, which includes state-by-state rebate figures, here.
Health Care for America Now is the nation’s leading grassroots health care advocacy organization. HCAN led the fight to win passage of health reform and to keep Congress from being steamrolled by corporate special interests.