Skip to main content

The good news about Obamacare you might have missed (updated)

While almost everyone is focusing on the recent Halbig decision by a federal court, you might have missed some good news that was just announced about Obamacare. As background, I've been paying a lot of attention to what I think is one of the most important insurance reforms included in the legislation - the medical loss ratios. They require insurance companies to spend 85% (80% for those in the small group market) of premiums on healthcare. If they spend more than 15-20% on administration/profit, they are required to pay it back in a rebate to their customers.

The Department of Health and Human Services just announced that those rebate checks will be in the mail shortly.
U.S. health insurers will send out about $330 million in rebates to employers and individuals this summer under President Barack Obama's healthcare law, the U.S. Department of Health and Human Services said on Thursday...

The rebates will go to about 6.8 million people and have a value of about $80 per family. They are to be sent by Aug. 1 either directly to consumers or to the employer providing the health coverage, who is required to pass the savings onto employees, the agency said in a report.
But perhaps even more important is the impact this provision has had on premiums overall.
If insurance companies had maintained the 2011 ratio of premiums relative to the cost of medical care, consumers would have spent $3.8 billion more in additional premiums in 2013, the health agency said.
In other words, in 2013 Obamacare saved us all $3.8 billion in premiums via the medical loss ratios. That, my friends, is a BFD!!!

UPDATE: The White House just released this image showing the total savings from 2011-2013.


Comments

  1. Nancy I think there is another hidden savings some aren't thinking about as much either; it's the fact there is no life time limit anymore and you can't be taken off your insurance if you do get sick and they don't want to cover you. You might have the statistics, I don't. Yesterday Pat Bowlens family announced he would no longer be running day to day operation of the Denver Broncos. He's wealthy and has good insurance I'm sure but no one except close family and friends new he was fighting this battle. A person without their resources would be devastated finically and not just mentally. My son has insurance for the first time as an adult of thirty-six because his oilfield employer in WY wanted low cost insurance too and bought a group plan for his small company. Carol

    ReplyDelete
    Replies
    1. Where we'll see the impact of the reforms you're talking about (getting rid of caps and denials for pre-existing conditions) will be in a reduction of the number of personal bankruptcies. Remember that health care costs were the leading cause of bankruptcy prior to Obamacare.

      I recently saw a study of how Massachusetts was just starting to be able to document that as a result of health care reform. So it will likely take a few years to see it nationally.

      Delete

Post a Comment

Popular posts from this blog

A Soulless White House

  A group called Dog Lovers for Joe put out one of my favorite ads of this election season. New favorite ad pic.twitter.com/qfNQTqQNIe — Santiago Mayer (@santiagomayer_) October 1, 2020 But it isn't just dogs that have been missing from the White House for the last four years. Let's take a walk down memory lane and remember what used to happen there. The Obama White House wasn't just a place where the president lived and conducted business. I remember noticing that things were going to be different in February 2009 when Michelle Obama hosted an event for middle school children to celebrate Black History Month, which featured a performance by Sweet Honey in the Rock. Here's what she said at the time: As President and First Lady, Barack and I are just the caretakers of this house.  We're just borrowing it for a little bit.  But while we live here, we're your neighbors, okay?  And we want you to feel welcome here at the White House, which really is, as the Admiral

What Obama Learned as a Community Organizer

I recently ran across this article that Barack Obama wrote back in 1988 while he was still a community organizer. The closing paragraph speaks not only to what he learned during those years, but it is a great example of why so many people talk about his amazing talent as a writer. Just imagine what it would be like if we had a President who wrote about urban Americans like this :-) In return, organizing teaches as nothing else does the beauty and strength of everyday people. Through the songs of the church and the talk on the stoops, through the hundreds of individual stories of coming up from the South and finding any job that would pay, of raising families on threadbare budgets, of losing some children to drugs and watching others earn degrees and land jobs their parents could never aspire to — it is through these stories and songs of dashed hopes and powers of endurance, of ugliness and strife, subtlety and laughter, that organizers can shape a sense of community not only for

What We Should Be Talking About on the Anniversary of 9/11

Fifteen years ago this Wednesday Congress passed the Authorization for the Use of Military Force (AUMF) Against Terrorists . Just three days after the attacks on 9/11, it passed unanimously in the Senate and only one member of the House - Rep. Barbara Lee - voted against it. If you have some time, I suggest that you listen to her accounting of that decision that was part of RadioLab's broadcast called " 60 Words " (the number of words contained in the AUMF). The reason those 60 words are so important is because they changed the way this country deals with terrorism - and it is still in effect 15 years later. If you remember, prior to that time, terrorists like Ramzi Ahmed Yousef (WTC bombing) were apprehended and tried in our court system. The 2001 AUMF launched the Bush/Cheney "global war on terror" which not only led to the war in Afghanistan, but was used to justify things like torture and the prison at Guantanamo Bay. Of all the legacies of President Oba