Thanks to OBAMACARE, Americans who bought individual health plans in 2012 saved $2.1 billion thanks to Obamacare consumer protections that limit how much insurers can profit off of Americans’ premiums, according to a new study by the Kaiser Family Foundation (KFF). The vast majority of those savings stem from individual health plan providers lowering the premiums they charge Americans in an effort to comply with the reform law. The Kaiser study comes shortly after several major California insurers announced that they would have to pay back $36 million to small businesses and their employees after charging them too much. Obamacare mandates that insurers on the individual market spend at least 80% of the premiums they charge on actual medical services, or reimburse the amount they overspent to their customers. But insurers can avoid writing those checks after-the-fact if they just lower their premiums to begin with — and KFF’s study concludes that’s what many individual plan providers have been doing. KFF estimates that individual market insurers lowered their premiums by $856 million in 2011 and by $1.9 billion in 2012 to comply with the so-called “80/20 rule” kff.org/health-reform/perspective/beyond-rebates-how-much-are-consumers-saving-from-the-acas-medical-loss-ratio-provision/
Posted on: Sat, 08 Jun 2013 22:16:27 +0000
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