American consumers have saved an estimated $2.1 billion on health insurance premiums as a result of two important provisions of ObamaCare (Affordable Care Act) that protect consumers from excessive premiums.
Under the first provision, insurance companies must submit a justification for public review if they want to raise premiums by 10 percent or more. This protects consumers for excessive—and unjustified—rate increases. Rate reviews have helped save an estimated $1 billion for American consumers.
The second provision, the so-called 80/20 rule, ensures that insurance companies spend at least 80 percent of premium dollars on patient care. Those companies that do not meet those spending requirements must write checks back to their customers for the difference. Consumers have received rebate checks for $1.1 billion thanks to the 80/20 rule.
“These rules have brought transparency and accountability to the healthcare marketplace,” said Ashleigh Crocker, spokesperson for Know Your Care VA. “Because of ObamaCare, consumers in Virginia are saving millions of dollars on healthcare premiums. And for the first time ever, millions of consumers across the country are getting money back from their insurance companies.
To assist states in this effort, the Affordable Care Act provides states with Health Insurance Rate Review Grants to enhance their rate review programs and bring greater transparency to the process. 42 states have used their rate review grant funds to make the rate review process stronger and more transparent.
Virginia is using grant funds to target rate reviews with specific companies, conduct an extensive premium trend analysis, and create templates to allow for standardized rate filing submission. Rate and form filings are also now available on the State’s website. scc.virginia.gov/boi/cons/index.aspx.
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