HHS announces 2012 premium rebates, savings
AHA News Now
Jun 20, 2013
About 8.5 million Americans will receive premium rebates averaging $98 per family from health insurers who did not meet medical loss ratio requirements in 2012, according to a report released today by the Department of Health and Human Services. Under the Patient Protection and Affordable Care Act, most individual and small group health plans must spend at least 80% and most large group plans at least 85% of premiums on direct medical care or quality improvement efforts or rebate the difference to policyholders annually by Aug. 1. In addition to the rebates, HHS estimates that the 80/20 rule and other ACA policies saved another 77.8 million enrollees $3.4 billion on their premiums upfront in 2012.