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Over $1 Billion In Consumer Rebates At Risk In Health Care Ruling

Over $1 Billion In Consumer Rebates At Risk In Health Care Ruling

 

Should the Supreme Court find Obamacare unconstitutional, the immediate impact of the ruling would be to take away a total of $1.1 billion in rebates headed to individuals and businesses.

The money comes from health insurance plans that that failed to meet the Affordable Care Act’s requirement that insurance companies spend at least 80 percent of subscriber premiums on health-care claims and quality improvement initiatives. In a new report, the Obama administration found that 12.8 million Americans will receive rebates this year, with an average value of $151 per household. “The big improvement here is a better value for the premium dollar,” said Mike Hash, interim director of the Center for Consumer Information and Insurance Oversight. “What this standard encourages issuers to do is be prudent in their administrative expenditures, so the bulk of the premium dollar is going to pay for benefits.”

The requirement in the law is known as the “medical loss ratio standard” and impacts both individual and group plans. The amount of the rebate varies by state. Consumers in Vermont’s individual market will see the country’s biggest rebates, averaging $807. In Washington, D.C., 592,234 households will receive rebates averaging $157. The 141,129 Maryland residents receiving rebates will see a higher amount, $340, while in Virginia, 686,738 customers will be rebated an average of $115.

Not all money will flow directly to consumers: For those who receive insurance through their workplace, the health insurance plan will send a rebate to the employer. It is then the employer’s responsibility to either pass that rebate on to the individual or use it in other ways that may benefit the employee, such as lowering premiums for the next year.

Eventually those rebates would decrease as insurance companies become more compliant, which would mean that consumers would be receiving a greater benefit from their premium dollars. This is not small change, either. For decades the health insurance company has continued to increase premiums, decrease services and benefits and make more and more money all while leaving many insured Americans saddled with medical debt. That debt is a drag on the economy and a parasitic force on the middle class. Remember that as the political posturing takes place from the right should the court strike down the law.

 

Related Stories:

Top 10 Obamacare Benefits At Stake For Women

If The Affordable Care Act Is Overturned Women Lose

If Obamacare Fails Can We Bring Back Single Payer Health Care?

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72 comments

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10:30AM PDT on Jun 30, 2012

Money is far better spent on WAR, making Cheny richer by murdering babies with Haliburton in Iraq and Afghanistan, better to Bomb Iran and improve the Corporate bottomline for Blackwater terrorists than returning taxes to the working poor in America. Romney has it right Vote GOP and make America safer for the superich.

11:05AM PDT on Jun 24, 2012

Currently our government functions as inverted corporatism. No matter which way the winds blow, tax payers will have to underwrite the care of those who cannot afford it, unless we become a society that feels it OK for folks to simply die in the street.

A single payer care system where heath insurance premiums are paid in the form of taxes would allow preventative care catching things early on, before more expensive care must be provided through the emergency room doors.

With "too big to fail" businesses (which equates to "too big to regulate") , we've seen the outcomes. Allowing the insurance industry to make every interaction a "too big to fail" vs. the ailing individual , the only winners are the profit margins.

Government need not actually provide the actual heath care , but in a single payer system, at least they would have far superior bargaining power in negotiating the rates.

We've seen what happens in other industries like credit cards, banking and such when they are allowed to do as they please. Makes one wonder what those championing a "free market" in this area are smoking and how many hundred dollar bills they lite it with.

10:38AM PDT on Jun 24, 2012

Good points nancy d. and David K. I hope the Health Care Act is not overturned because so many people will lose. I agree that single payer...universal health care would be the very best outcome, but can they get it passed? In the past the Republicans said they had a better plan than 'Hillary Care' then did nothing on health care when they took over.

If the Supreme Court overturns the Health Care Act it will be the third awful right wing partisan decision they make. anointing George W. Bush was the first, and Citizens United was the second.

7:48AM PDT on Jun 23, 2012

With the affordable healthcare the insurance companies are forced to spend 80% of premiums on actual healthcare. That is 80 cents on every dollar. That means the insurance companies are now spending at least 20 cents on every dollar on administrative costs. That is 20%. Medicare spends 3% on administrative costs. I wonder where the companies are spending that extra 17%? And I am sure that will be going up.

Interesting how the republicons have done a flying 180 since the Clinton administration. When Clinton wanted a single payor plan, the republicans came up with the manditory insurance plan just like the one Obama is pushing now. The theory behind their plan was everyone should be accountable for their insurance. If you chose not to participate you would be fined. You would have to post a bond. The republicans at the time did not think everyone else should have to pay for a noninsured person's visit to the ER. This was backed by the Heritage Foundation.
What lengths these crazies will go to just to make Obama a one term president. Amazing.

4:11AM PDT on Jun 23, 2012

The USA need a total revamp of the medical care system.

11:53PM PDT on Jun 22, 2012

Last time- getting annoyed w/Care 2's forgotten character counter. Again, not my words, but sums it up well....

Let me get this straight . . . .
We're going to be "gifted" with a health care
plan we are forced to purchase and
fined if we don't,
Which purportedly covers at least
ten million more people,
without adding a single new doctor,
but provides for 16,000 new IRS agents,
written by a committee whose chairman
says he doesn't understand it,
passed by a Congress that didn't read it but
exempted themselves from it,
and signed by a President who smokes,
with funding administered by a treasury chief who
didn't pay his taxes,
for which we'll be taxed for four years before any
benefits take effect,
by a government which has
already bankrupted Social Security and Medicare,
all to be overseen by a surgeon general
who is obese,
and financed by a country that's broke!!!!!
'What the h*ll could
possibly go wrong?'

11:52PM PDT on Jun 22, 2012

Steve R- "Monopoly money" exactly!

Billie C- complacency is rampant & is the main reason our freedom is disintegrating. Americans have become lazy & want everything for free. Few people understand the repurcussions of being forced to buy something. If the gov't can make us buy insurance, they can make us buy anything. How can anyone be so stupid not to see this? People here think we're invincible or something. We've been protected by a document for so long, many have taken it for granted. Some idiots want parts of it changed & once you take away one part of it, it will start shredding itself.

I've had probs posting here lately. What I was trying to quote was cut-off but pretty well sums up obamacareless. Again, someone else's words (wish I could give them credit)...

Let me get this straight . . . .
We're going to be "gifted" with a health care
plan we are forced to purchase and
fined if we don't,
Which purportedly covers at least
ten million more people,
without adding a single new doctor,
but provides for 16,000 new IRS agents,
written by a committee whose chairman
says he doesn't understand it,
passed by a Congress that didn't read it but
exempted themselves from it,
and signed by a President who smokes,
with funding administered by a treasury chief who
didn't pay his taxes,
for which we'll be taxed for four years before any
benefits take effect,
by a government which has
already bankrupted Social Security and Medicare,
all to be o

8:17PM PDT on Jun 22, 2012

"Over $1 Billion In Consumer Rebates At Risk In Health Care Ruling"....

And over $500 million in Medicare cuts at risk in Health Care ruling....

And over $730 BILLION a year in extra debt at risk if Obama is re-elected.

Who do you think is going to pay for the rebates Jessica Pieklo? And the Medicare cuts? And the growing mountain of Obama debt?

Santa Claus maybe?

Oh I know - we can just get the Fed to print some more Monopoly money, right?

The piece of garbage legislation known as the "Affordable Care Act" is not "affordable" at all - it needs to be scrapped and they need to start again with a very simple public option.

One that even Fancy Nancy can actually understand!

8:03PM PDT on Jun 22, 2012

i still say once the idiots in dc can force you to buy one thing they can force you to buy anything they decide to make into law. i won't give up my freedom to buy what i choose just because some fool says they can pass a law telling me i have to.

7:58PM PDT on Jun 22, 2012

beth k and your friends. i never said i liked romney care any more than i like obamacare. in fact if you took the time to read you would see that i said if we are going to give everybody insurance we should use medicare since it's already in place. it's not perfect but it works and it's better than obamacare will ever be.

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