80/20 rule Archives

Thanks to Obamacare, Millions Will Receive Refund Checks From Insurance Companies

Photo: CNN

This is making Republicans very very angry. Not only is Obamacare helping millions of Americans live healthier lives, thus reducing insurance costs, thus reducing the deficit, thus making the economy stronger, Obamacare is also giving refund checks to millions of people.

Millions of Americans can expect to get a refund from their insurance companies this year, at an average of about $80 dollars per family, thanks to a little-known Obamacare provision that’s helping people save money on their premiums. According to a new report released by the Health and Human Services Department on Thursday, Americans across the country have received a total of $1.9 billion dollars in rebates since this provision first took effect in 2011.
Obamacare’s medical loss ratio provision — which is also frequently referred to as the “80/20 rule” — requires insurers to spend at least 80 percent of every American’s premium costs on their medical care, rather than on the company’s own profits or administrative overhead. If insurance companies don’t hit the right balance, they have to issue a refund check to their customers to make up for it.
According to HHS’s calculations, 6.8 million Americans will save $330 million in refunds this year because of the 80/20 rule. Insurance companies are required to provide those reimbursements by no later than the beginning of August. Not everyone will actually receive a physical check in the mail; insurers are allowed to apply the reimbursements to future premiums, so the savings could show up that way.

Thanks to ObamaCare, Americans Will Receive Over $1.1 Billion in Rebate Checks This Summer

Thanks to ObamaCare, 12.8 millions of Americans will receive a rebate check in the mail this summer. The check is because of a provision in President Obama’s Health Care Law called the 80/20 rule. It requires insurance providers to spend 80% of premiums on providing health care to policy holders with the remaining 20% going to administrative costs. Any remaining balance must be returned to consumers instead of going to CEO’s bonus checks.

The total rebate of $1.1 billion is scheduled to go out this summer. An average of $151 will be sent to qualifying policy holders with other Americans receiving up to $800 checks depending on the type of policy, the state they live in and other factors. According to HealthCare.gov, Americans will be rewarded in one of the following ways;

a rebate check in the mail
a lump-sum reimbursement to the same account that was used to pay the premium if it was paid by credit card or debit card
a direct reduction in their future premiums
their employer providing one of the above rebate methods, or applying the rebate in a manner that benefits its employees.

ObamaCare, also called The Affordable Health Care Law is presently being debated in The Supreme Court. A Congressional Republican push to paint the law as unconstitutional will be decided by the Supreme Court in a few more days. If the Republicans succeed and the Court determines the law violates the Constitution, insurance companies may chose to pay their CEO’s with the rebate checks instead, just like they did before the law went into effect.

Just another example of Congressional Republicans, working for Corporations instead of the American people.