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Wed Aug 1, 2012, 04:59 PM

Health insurance rebates (ala ACA) may keep premiums down FOR EVERYONE [View all]

it's another case of Republican propaganda inverting reality. The GOPers said the ACA was going to increase people's health insurance costs.

Reality: THe 80:20 rule in the ACA which requires insurers to pay out rebates if their expenditures for actual health care are below 80% of their premium revenues, is causing insurers to get the most for their expenditures for medical care and that is bringing down costs and decreasing premiums for everybody.

And the rebates this year come to about $1.1 Billion.

Actually, this is exactly what Obama was saying the ACA would do --- if you could hear him above the chanting about 'death panels' etc from the Insurance company flacs (aka Republicans).

(emphasis my own)

By Alex Brandon, AP

As the last of $1 billion worth of this year's health insurance rebate checks goes out to consumers this week, insurers and government officials say the new regulation may be keeping premiums lower for everyone.

"Consumers who are not getting rebates are benefiting from the plan," said Teresa Miller, acting director of the office of oversight for the Center for Medicare Services. "Insurers are keeping their premiums down."

The 2010 health care law requires health insurers to spend at least 80% of consumers' premiums on health care and not administrative costs such as overhead or salaries. If they don't, they must issue their customers a rebate. That check may go to the consumer or the consumer's employer, depending on how a person purchases her insurance.


For Blue Cross, as well as several other large insurers, avoiding the "medical loss ratio" means new programs that concentrate on paying for effective care, rather than by the number of tests or procedures a patient receives.


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