New York Consumers to Receive Over $142 Million in Health Insurance Rebates Thanks to Affordable Care Act
New York consumers will receive $142,422,955 in health insurance rebates as a result of the work of the Westchester County Association's Blue Ribbon Task Force on Healthcare Reform and new provisions of the Affordable Care Act, according to a Kaiser Family Foundation report that was released earlier today...
“This year, New York consumers will actually be getting money back from their insurance companies,” said Raymond Rodriguez, New York spokesman for Know Your Care. “This sort of rebate would have been unheard of a few years back, but thanks to President Obama’s Affordable Care Act, we can now come to expect this sort of transparency and consumer protection.”
The Affordable Care Act requires that insurance companies spend at least 80% of premiums on patient care. This provision, the Medical Loss Ratio (MLR), guarantees that consumer premiums are going back to the consumers themselves—and not use for CEO bonuses or corporate retreats. Insurance companies who do not meet this 80% threshold must pay rebates to consumers. The amount depends on the extent to which the insurer fell below that threshold.
The MLR provision is just one of the ways that the Affordable Care Act increases transparency and extends new protections to American consumers. The rule went into effect on January 1, 2011. The first rebates to consumers will be issued this year. In the large group market, one insurer already paid $127,203,068 in rebates to consumers. In the individual market, one insurer already paid $330,770 in rebates to consumers.