YubaNet.com
Wednesday, September 17 2014

            We Deliver News to the Sierra
News Fire News spacer Latest News spacer Regional News spacer California News spacer USA News spacer World News spacer Op-Ed spacer Enviro News spacer Sci Tech News spacer Life spacer Odd News spacer Cartoons spacer
Features The Calendar features features Weather features Sierra NightSky features features features Road Conditions features Home spacer
US
 

Health care law saves consumers over $1 billion

Health care law provides rebates to more than 12 million consumers

    Google+    

By: HHS

June 21, 2012 - Today, Health and Human Services (HHS) Secretary Kathleen Sebelius announced that 12.8 million Americans will benefit from $1.1 billion in rebates from insurance companies this summer, because of the Affordable Care Act's 80/20 rule. These rebates will be an average of $151 for each family covered by a policy.

The health care law generally requires insurance companies to spend at least 80 percent of consumers' premium dollars on medical care and quality improvement. Insurers can spend the remaining 20 percent on administrative costs, such as salaries, sales, and advertising. Beginning this year, insurers must notify customers how much of their premiums have been actually spent on medical care and quality improvement.

Insurance companies that do not meet the 80/20 standard must provide their policyholders a rebate for the difference no later than Aug. 1, 2012. The 80/20 rule is also known as the Medical Loss Ratio (MLR) standard.

"The 80/20 rule helps ensure consumers get fair value for their health care dollar," Secretary Sebelius said.

Consumers owed a rebate will see their value reflected in one of the following ways:

· a rebate check in the mail;

· a lump-sum reimbursement to the same account that they used to pay the premium if by credit card or debit card;

· a reduction in their future premiums; or

· their employer providing one of the above, or applying the rebate in a manner that benefits its employees.

Insurance companies that do not meet the 80/20 standard will send their policyholders a rebate for the difference no later than Aug. 1, 2012. Consumers in every state will also receive a notice from their insurance company informing them of the 80/20 rule, whether their company met the standard, and, if not, how much of difference between what the insurer did or did not spend on medical care and quality improvement will be returned to them.

For the first time, all of this information will be publicly posted on HealthCare.gov this summer, allowing consumers to learn what value they are getting for their premium dollars in their health plan.

For many consumers, the 80/20 rule motivated their plans to lower prices or improve their coverage to meet the standard. This is one of the ways the 80/20 rule is bringing value to consumers for their health care dollars.

For a detailed breakdown of these rebates by state and by market, please visit:
http://www.healthcare.gov/law/resources/reports/mlr-rebates06212012a.html

For the text of these proposed notifications, please visit: http://cciio.cms.gov/resources/other/index.html#mlr

For more information on the MLR provision in the Affordable Care Act: http://www.healthcare.gov/law/features/costs/value-for-premium/index.html

For more information on how the Affordable Care Act is creating a transparent market for health insurance, visit: http://www.healthcare.gov/news/factsheets/2010/12/increasing-transparency.html

 

Help us bring you more news. Be a real reader: Support YubaNet

By submitting a comment you consent to our rules. You must use your real first and last name, not a nickname or alias. A comment here is just like a letter to the editor or a post on Facebook. Thank you.

 

Latest Headlines

US

Brady Center Sues Online Sellers of Ammunition and Equipment Used in Aurora Movie Theater Massacre

Sovereign citizen movement perceived as top terrorist threat by state, local and tribal law enforcement

A.G. Schneiderman Leads 8-state Coalition in Supporting Broad Protections of Waters under the Federal Clean Water Act

Study: Lack of Voting Resources Leads to Long Lines, Delays Longer in Minority Precincts

Export of Hate: Global Advocacy of American Anti-LGBT Extremists Exposed

Newly Discovered 1033 Military Surplus Records Show School Districts Around the Country are Receiving Advanced Military Equipment

NC congressman presses for release of censored 9/11 report pages

Veterans for Peace: President's plan continues to make the U.S. the "greatest purveyor of violence" on earth and places service members in harm's way

Two Navy Hornet Jets Crash in Pacific Ocean

Scholars: Texas social studies textbooks include serious distortions of history and contemporary issues


More

 

 

 

 

NEWS . Fire News . Latest . Regional . California . USA . World . Op-Ed . Enviro . Sci/Tech . Life . Odd News . Cartoons
FEATURES . The Calendar .Weather . Sierra NightSky . Horoscope . Road Conditions
YubaNet.com . Advertising. About Us . Support YubaNet . Contact Us . Terms of Use . Privacy

YubaNet.com © 1999-2014
Nevada City, California (530) 478-9600