YubaNet.com
Friday, February 27 2015

            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

Access Hails U.S. FCC Adoption of Strong Net Neutrality Rules

One Year After Standoff Over Nevada Cattle Trespass, Questions Remain About Unpaid Fees, Prosecution

2014 National Environmental Scorecard Reveals House’s Relentless Environmental Attacks for Fourth Year in a Row

USDA Records Reveal Staffing Shortages Undermining Food Safety

Scientific Fraud Infests Fish and Wildlife Service Top Ranks

New Report Puts Religious Right At Center of Drive to Unleash Big Money in Politics

Environmental, Landowner Groups Applaud President Obama’s Keystone XL Veto

New Report: Oil and gas industry using flawed research to promote fracking

Federal job-protected family and medical leave rights extended to eligible workers in same-sex marriages

In wake of court ruling, Texas groups call for halt to expansion of private family detention camps, release of refugee families


More

 

 

 

 

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

YubaNet.com © 1999-2015
Nevada City, California (530) 478-9600