U.S. Health and Human Services (HHS) Secretary Sylvia M. Burwell recently announced that the Affordable Care Act (ACA) has saved consumers a total of $9 billion in health insurance premiums since 2011.1 Below, your trusted California health insurance agent reports more.
A report released by HHS shows that in 2013 alone, consumers across the nation saved $3.8 billion up front on premium costs. Many consumers nationwide will receive also receive refunds this year as a result of the ACA’s “80/20 rule,” which requires that insurers spend at least 80 percent of the money received from insurance premiums on patient care and quality improvement activities.
Also known as the Medical Loss Ratio (MLR) rule, it is designed to deter insurance companies from taking excessive profits and spending excessively on red tape. Insurance companies who violate this rule must send refunds to policyholders.
“We are pleased that the Affordable Care Act continues to provide Americans better value for their premium dollars,” said Secretary Burwell. “We are continuing our work on building a sustainable long-term system, and provisions such as the 80/20 rule are providing Americans with immediate savings and helping to bring transparency and accountability to the insurance market over the long term.”
The 80/20 rule and other provisions are efforts to slow premium growth and help moderate insurance premium rates.
Get Help Applying for Coverage
California’s health insurance exchange, Covered California, will soon begin enrolling individuals and small businesses in health plans for 2015. If you have a qualifying life event, such as a job loss or change in marital status, you may qualify for earlier enrollment.
The Certified Insurance Agents at Benefit Packages are specially trained to help consumers enroll in plans through Covered California, and determine eligibility for cost-sharing subsidies and tax breaks. Call us today for assistance.