Obamacare Rocks - $1.3 BILLION in Rebates Projected

Today the Kaiser Foundation released

This brief was prepared by Cynthia Cox, Larry Levitt, and Gary Claxton of the Kaiser Family Foundation as part of the Kaiser Initiative on Health Reform and Private Insurance, which examines the implications of changes in the private insurance market under the ACA and informs federal and state policymakers as they implement provisions of the law.

A Snip from the report

Insurer Rebates under the Medical Loss Ratio: 2012 Estimates

By August of this year, insurance companies will be required to issue consumer rebates if they were not in compliance with the Medical Loss Ratio (MLR) provision of the Affordable Care Act (ACA) for 2011. Under the MLR rule, insurers offering health coverage to individuals and small businesses must spend at least 80 percent of their premium income on health care claims and quality improvement activities, reserving 20 percent or less for administrative expenses such as administering coverage, marketing products and earning profits for investors.1 The MLR threshold is higher for large group plans, which must spend at least 85 percent of premium income on claims and quality improvement, leaving 15 percent or less for administrative expenses. If insurers fail to meet these requirements, they must pay rebates to consumers. The amount of the rebate will depend on the extent to which the insurer fell below the threshold.

Actual rebate amounts – which will be based on information to be submitted by insurers to the federal government – will likely vary. In some cases, consumers or employers may receive their rebates in the form of a discount on future premiums, rather than a check.4 Rebates in the group market will generally be provided to employers, and in some cases be passed on to employees as well.5 For people who were only enrolled during part of the year, rebates will be prorated accordingly. Insurers issuing rebates will be required to send notices to consumers alerting them of the amount of the rebate and the manner in which it will be administered.

Based on the preliminary estimates from insurers, rebates would total $1.3 billion this year, including $426 million in the individual market, $377 million in the small group market, and $541 million in the large group market. While total rebates are highest for large employers and their workers, many more people are also covered in that market segment.

Read the whole report >>>HERE<<<

Based on the report rebates in Minnesota could reach $14.5 Million:

Estimated MLR Rebates in the Individual Market            $ 1,060,194.00

Estimated MLR Rebates in the Small Group Market           zero

Estimated MLR Rebates in the Large Group Market       $13,557,968.00

Based on the report rebates in Wisconsin could reach $16.8 Million:

Estimated MLR Rebates in the Individual Market            $ 2,593,557

Estimated MLR Rebates in the Small Group Market        $ 4,736,616

Estimated MLR Rebates in the Large Group Market       $ 9,486,342

Obamacare – rocks!!!!
Intelligent people love Obamacare!!