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Health Insurance Rebates Sending $500 Million Back To Consumers, Federal Report Says
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| Contributor | Brandonius Maximus |
| Last Edited | Brandonius Maximus Jun 21, 2013 07:17am |
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| Category | News |
| Author | Jeffrey Young |
| Media | Website - Huffington Post |
| News Date | Thursday, June 20, 2013 01:15:00 PM UTC0:0 |
| Description | Millions of health insurance customers are due rebates this year that will total $500 million because of President Barack Obama's health care reform law, the federal government announced Thursday.
By Aug. 1, 8.5 million people will get rebates valued at an average of $100 because their health insurance providers spent too much on overhead and not enough on medical care last year, according to the Centers for Medicare and Medicaid Services. Under the health care reform law's so-called 80/20 standard, health insurers must devote at least 80 percent of the premiums they receive to medical services, essentially capping the amount they can spend on administration and retain in profits.
The rule aims to force health insurance companies to streamline their businesses and reduce the premiums they charge consumers. In addition to this second year of rebates, the Obama administration maintains the regulation has encouraged health insurers to cut overhead and to reduce prices to avoid having to pay refunds. |
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