As a result of the Affordable Care Act (ACA), U.S. citizens are getting more than health insurance -- some are getting rebates, as well. A report that was conducted by the Centers for Medicare & Medicaid Services (CMS) showed that, since 2011, more than $2.4 billion in rebates has made its way back to consumers.
These rebates are the result of an ACA mandate called the Medical Loss Ratio, which mandates that health insurance providers in small and medium markets spend a minimum of 80 percent of revenue made from premiums on health care -- not on operational expenses or overhead.
Providers in the large market must spend at least 85 percent of their revenue on health care.
“Thanks to the Affordable Care Act, there are now programs in place to give consumers maximum value for their premium dollar,” Kevin Counihan, CEO of the Health Insurance Marketplace, said. “We are pleased that the tools created under the health care law are working as intended to give consumers access to high-quality health insurance coverage and keep cost affordable.”
In 2014, nearly $470 million in rebates went back to more than 5.5 million consumers.
The complete Medical Loss Ratio report is available online at www.cms.gov.
