Home > Health Insurance Company: Fraud, Denials and Other Issues > Health Insurance Companies to Give Rebates to Consumers

Health Insurance Companies to Give Rebates to Consumers

Health insurance companies in USA will be giving over $1,000,000,000 in rebates back to the consumer this year for failing to meet the required 80/20 medical loss ratio rule. This is a rule established in the Affordable Care Act that requires insurers to actually pay 80% of premium dollars to a patient’s care and not let it be used for greedy shareholder and executive profits. Profits and revenue of insurers are down nearly 5% (according to CNBC) as a direct result of the 80/20 rule. The insurance lobby can try to repeal this part of the ACA but their efforts will be futile since Health and Human Services has already implemented and adopted it as one of their own rules. The 80/20 provision (now rule) was brilliantly written by the Congressional Healthcare Caucus, Congressional Physician Caucus, U.S. Senate Health Education Labor and Pensions Committee, U.S. Senate Finance Committee, and U.S. Senate Commerce Committee back when I was writing health care policy in Congress in 2008.

Source:  CNBC

Source: http://commerce.senate.gov/public/index.cfm?p=PressReleases&ContentRecord_id=79f6f00b-1db6-4f49-b9df-663f532f94da

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