More People May Like Obamacare After They Get Their Rebate CheckPosted by Phil Ferguson on August 1st, 2012 – 1 Comment – Posted in Uncategorized
$1 Billion in cash now on its way to the American public.
American health insurance companies are about to shower over $1 billion in rebates on policyholders — refunding premiums paid in 2011 that fail to meet the so-called 80/20 rule imposed by the health care reform law.
How cool is that?
Under that 80/20 rule, health insurers are required to use no more than 20% of premiums for overhead and profit, with at least 80% going to cover the cost of health care and quality improvements. For large group plans — those covering more than 50 employees — a more stringent standard applies. They must spend at least 85% of premiums on health care and improvements. To the extent a company misses the mark, it must rebate sufficient premiums to bring it into line.
This prevents super large insurance companies from collecting money and NOT using it on insurance.
Based on data for 2011, the federal government says insurers will rebate about $1.1 billion to 12.8 million Americans. The average rebate for households that get one will be about $151. The rebates are to be made by August 1.
$151 is not huge but if your budget it tight it is a nice little surprise and another reason for many to like The Patient Protection and Affordable Care Act (PPACA).
The GOP is put in the position of claiming that the big companies should be allowed to keep that extra 1.1 Billion. What do you think? Did you get a rebate check?