8.5 Million Enrollees to Receive Health Insurance Rebates
Rebates averaging $100 per family to be paid as part of ACA '80/20' rule
WEDNESDAY, June 26 (HealthDay News) -- About 8.5 million enrollees will receive a rebate of about $100 per family as part of the Affordable Care Act "80/20" rule, according to a report published by the U.S. Department of Health and Human Services.
Based on the "80/20" rule in the Affordable Care Act, insurers are required to spend at least 80 cents of every premium dollar on patient care and quality improvement. Rebates are owed back to consumers if a higher amount is spent on other expenses such as profits and administrative red tape. This new standard and other policies contributed to savings of about $3.9 billion on premiums in 2012 and for $5 billion since the inception of the program.
In the case of insurance companies that did not spend enough premium dollars on patient care and quality improvement, rebates will be paid by check, lump-sum to credit card or debit card, or by a reduction in future premiums. Alternatively, an employer may provide rebates in one of these ways. Consumers will be informed if their insurance company did not meet the standard. Nationwide, consumers will save $500 million in rebates, and 8.5 million enrollees will receive an average rebate of $100 per family.
"The health care law is providing consumers value for their premium dollars and ensuring the money they pay every month to insurance companies goes toward patient care," Kathleen Sebelius, U.S. Health and Human Services Secretary, said in a statement. "Thanks to the law, 8.5 million Americans will receive $500 million back in their pockets and purses."
More Information (http://www.hhs.gov/news/press/2013pres/06/20130620a.html )