Tennessee Gal
Health Plans Will Pay $1B Obamacare Rebate For Not Spending Enough On Care
Last edited Sat May 12, 2012, 06:26 AM USA/ET - Edit history (1)
~snip~
A little more than one-third of the rebate money, or $541 million, will go to large employers, Kaiser said. Meanwhile, small businesses will get $377 million while individual policy holders will get $426 million. Kaiser said that about one in three U.S. consumers in the individual market will get a rebate of $127 each on average.
http://www.forbes.com/sites/brucejapsen/2012/04/27/health-plans-will-pay-1b-obamacare-rebate-for-not-spending-enough-on-care-3/
Report: Health care law rebates to top $1B
~snip~
That's real money, says Larry Levitt of the Kaiser Family Foundation, which analyzed industry filings with state insurance commissioners. The law requires insurers to spend at least 80 percent of the premiums they collect on medical care and quality improvements -- or issue rebates to policyholders.
"This is one of the most tangible benefits of the health reform law that consumers will have seen to date," said Levitt, an expert on private health insurance. The nonpartisan foundation is an information clearinghouse on the nation's health care system, and its research is widely cited.
Read more: http://www.foxnews.com/politics/2012/04/26/report-health-care-law-rebates-to-top-1b/#ixzz1ueLZqtQB
http://www.democraticunderground.com/1002678186As I understand it, 0bamcare is forcing insurance companies to spend 80% of their money on claims, and only 20% on overhead. I wonder how much of the overhead is due to regulations already in place, and I wonder if these rebates will be considered overhead so it gets counted against them next year.
Yeah we were crazy when we accused 0bama of trying to kill off the insurance companies.
Alcibiades
1. Finally some good news
Politically, much of this law was absolutely stupid, particularly since the best provisions won't kick in until 2014. At least they actually did something people will notice before the election. Getting a check from your insurer because they have been ripping you off all along? That's a new thing.
I'm sure a check for $127 will cause people to flock to 0bama.
StitchesforSnitches
4. Yes this is good news
but if you purchase insurance via your employer, your employer has no legal obligation to pass the rebate on to the employees who purchased the insurance.
So your evil employer will get that $127.
nineteen50
5. and who said industry can regulate itself
Yeah we need stupid regulations like this that will bankrupt them.
I'm not a conspiracy theory person, but I honestly do believe that the goal of 0bamacare is to destroy the insurance industry, which will create a demand for single payer.
