Affordable Care Act delivering benefits to consumers

Posted by AzBlueMeanie:

Arizona consumers and businesses can expect to collect more than $36 million in refunds this summer from health-insurance companies under provisions of the Affordable Care Act, according to two reports. Health-insurance refunds on the way for Arizonans:

The reports show consumers who have purchased individual health-insurance plans will get $24.4 million in refund checks or credits to future premiums. Insurers also will refund $9.3 million to employers with small-group plans of fewer than 50 people and an additional $2.9 million to companies with larger plans of more than 50 people, according to reports by Consumers Union and Kaiser Family Foundation.

The Affordable Care Act requires health-insurance companies to spend at least 80 percent of premiums on medical care or efforts to improve health-care quality for consumers and small businesses. For large businesses, that threshold increases to 85 percent spent on medical care or health-quality initiatives.

The new "medical-loss ratio" standards, which took effect Jan. 1, 2011, are meant to provide relief to consumers and businesses and prevent insurance companies from keeping a significant portion of customers' premiums for salaries, brokers' fees, profit and other administrative costs.

The first round of rebates, based on insurers' spending for 2011, must be sent to customers by Aug. 1.

Representatives for Washington, D.C.-based Consumers Union said the report shows that the health-care law's rules are beginning to pay dividends for consumers both in rebates and lower rate increases.

* * *

The Consumers Union report showed that Blue Cross Blue Shield of Arizona expects to rebate $8.7 million to more than 77,000 individual policyholders. UnitedHealthcare's Golden Rule Insurance will refund nearly $8.7 million to more than 30,000 policyholders. Aetna Life, Mega and Humana also expect to refund consumers.

Small businesses also can expect some relief, with Blue Cross Blue Shield anticipating refunds of about $3.2 million to more than 3,700 small businesses. Humana, Aetna and Trustmark Life Insurance Co. each expect to refund at least $1 million to small-group plans.

Blue Cross Blue Shield representatives said the Consumers Union's report accurately reflects its anticipated rebates to policyholders.

Just remember to say "thank you." And for those of you who reflexively say in knee-jerk fashion "repeal Obamacare" — you can just send your rebate check back since you obviously prefer to pay higher premiums.

KAISER ANALYSIS: ESTIMATED HEALTH INSURANCE REBATES UNDER THE HEALTH REFORM LAW TOTAL $1.3 BILLION DOLLARS IN 2012