Commanders Post at The Warpath - View Single Post - Supreme Court Upholds Health Care Mandate

Giantone · 06-06-2013, 07:11 PM

More Good News on the Health Care Mandate.

Thanks To Obamacare, Major Insurers Have To Give Back $36 Million To California Small Businesses | ThinkProgress

"On Tuesday, Golden State small businesses and their employees got some great news: two of the state’s largest insurers will have to give them over $36 million in insurance rebates because of an Obamacare consumer protection.

The health law forces insurers to spend at least 80 percent of the premiums they charge on paying for actual medical services, rather than administrative overhead or profits. That means more money for ordinary consumers — and less for profitable insurance companies.

The so-called “80/20 rule” put $1.5 billion back into Americans’ pockets in 2011 alone. The average rebate was $151 per family across all insurance markets, and in states where insurers blatantly gouged prices, average rebates topped a whopping $500 per family.

Now, the benefits for Californians with small business health plans are beginning to materialize. Blue Shield of California will be forced to pay back $24.5 million in rebates. Anthem Blue Cross will have to pay back another $12 million.

While cheering the latest numbers as a victory for California small businesses and their employees, consumer advocates argue that the insurance industry should try harder to proactively lower costs for companies and individuals.

“Health insurers should work to cut upfront premiums rather than reimburse consumers afterward,” said Jon Fox, consumer advocate at the California Public Interest Research Group Education Fund, in an interview with the Los Angeles Times. “Millions of dollars in rebates are a clear sign that health insurers are overcharging consumers.” "

06-06-2013, 07:11 PM	#269
Giantone Gamebreaker Join Date: Apr 2006 Posts: 14,371	Re: Supreme Court Upholds Health Care Mandate More Good News on the Health Care Mandate. Thanks To Obamacare, Major Insurers Have To Give Back $36 Million To California Small Businesses \| ThinkProgress "On Tuesday, Golden State small businesses and their employees got some great news: two of the state’s largest insurers will have to give them over $36 million in insurance rebates because of an Obamacare consumer protection. The health law forces insurers to spend at least 80 percent of the premiums they charge on paying for actual medical services, rather than administrative overhead or profits. That means more money for ordinary consumers — and less for profitable insurance companies. The so-called “80/20 rule” put $1.5 billion back into Americans’ pockets in 2011 alone. The average rebate was $151 per family across all insurance markets, and in states where insurers blatantly gouged prices, average rebates topped a whopping $500 per family. Now, the benefits for Californians with small business health plans are beginning to materialize. Blue Shield of California will be forced to pay back $24.5 million in rebates. Anthem Blue Cross will have to pay back another $12 million. While cheering the latest numbers as a victory for California small businesses and their employees, consumer advocates argue that the insurance industry should try harder to proactively lower costs for companies and individuals. “Health insurers should work to cut upfront premiums rather than reimburse consumers afterward,” said Jon Fox, consumer advocate at the California Public Interest Research Group Education Fund, in an interview with the Los Angeles Times. “Millions of dollars in rebates are a clear sign that health insurers are overcharging consumers.” " __________________ ....DISCLAIMER: All of my posts/threads are my expressed typed opinion and the reader is not to assume these comments are absolute fact, law, or truth unless otherwise stated in said post/thread.