Friday, April 27, 2012

Even Obamacare opponents get Insurance company rebate thanks to the Affordable Care Act.

When the Supreme Court strikes down the Affordable Care Act for strictly partisan reasons, and to protect against forcing Americans to buy cell phones, food and brocolli, remember what you're about to give up:
Post Crescent: Wisconsin businesses and consumers will get an estimated $16.8 million in rebates this year from health insurers that spent more on administrative expenses and profits than allowed under the 2010 health care overhaul, according to a report released Thursday. Insurers that have told the state they expect to owe rebates cover 365,395 Wisconsinites, according to the Kaiser Family Foundation, a nonpartisan health policy research group.

"This study shows that asking insurance companies to put more of their premium dollar towards patient care rather than administration and profits is not only popular but also effective," Kaiser President and CEO Drew Altman said.

The advocacy group Health Care for America Now called the spending rule a victory for consumers and warned that it's in jeopardy if the Supreme Court overturns the 2010 law. "For far too long, health insurance companies have been ripping off consumers, and Obamacare finally put a stop to that," said Ethan Rome, executive director of Health Care for America Now.

The rebates, however, don't show the full impact of the new rule. Some insurance premiums haven't risen as fast as they could have, or have fallen, so insurers would not owe a rebate. The Kaiser Family Foundation said that probably produced more savings for consumers than the rebates themselves. Also helping keep premiums down is another new rule requiring a review of premiums that increase more than 10 percent.

1 comment:

  1. Not sure it's going to be shot down John. The judges may have been putting on a good show but in the end it is constitutionally sound. Furthermore, there is huge negative ramifications for the insurance companies if this is repealed.