Some people getting Refund from Health Insurance companies because of ACA 80/20 Rule

[blankslate]

Has anyone mentioned this yet?

There is a rule in the the ACA that requires that no more than 20 percent of health care insurance fees be spent on administrative costs.

http://www.katv.com/story/19136933/...es-should-be-in-the-mail?clienttype=printable

The "80/20 rule" in the ACA mandates that health insurers spend at least 80% of their customers' premiums on health services, leaving no more than 20% for administrative costs and advertising. That means if an insurance company spends 78% of the money it collects on health benefits for customers, it has to send rebate checks for the additional 2%.

A total of about $1.1 Billion has to be given back to customers because of this rule.


http://www.frontiergroup.org/blogs/blog/fg/tangible-financial-benefit-affordable-care-act

Individuals and employers who purchase insurance will receive a check or a reduced rate on future premiums. Roughly 30 percent of people who buy individual or small group insurance will receive a refund, as will 20 percent of people who buy large group insurance. The refund rate for people with individual insurance is highest in Texas, where 92 percent of consumers will receive a refund. The amount refunded will be highest in Alaska ($305 per person) and Maryland ($294 per person). Full state-by-state data on refund rates and amounts for different insurance market sizes is available in the report.

I'm surprised the Obama Campaign isn't talking about this. If more people knew about this 80/20 rule some would change their mind in opposing the ACA

 

[spacejamz]

http://forums.anandtech.com/showthread.php?t=2258372

 

[Lithium381]

i think i'm getting back around $13 my ins co sent me a letter

 

[blankslate]

http://forums.anandtech.com/showthread.php?t=2258372

doh! my bad.

 

[Fanatical Meat]

Yup its still being determined who gets what chunk of this pie. Too bad Romney won't take credit for it. Obama has totally failed talking up the good points.

 

[EagleKeeper]

If the insurance company is smart, they will then offer a reducuction in premium the following yer.

Many times; people will be switching companies and the lower premium will not be fully benefited.

 

[Binarycow]

my wife got about 35 bucks back a few weeks ago on her BCBS policy.

 

[dmcowen674]

i think i'm getting back around $13 my ins co sent me a letter

Was wondering why we just got a $20 check.

Compared to the thousands spent I guess anything coming back is better than nothing.

 

[werepossum]

It's a good rule. Twenty percent should be the upper end of administrative costs.