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HHS: ObamaCare policy has saved consumers nearly $5 billion




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June 20, 2013 | 2,182 views | 13 comments

From dncrrmain-bounces@dnc.org
By Sam Baker - 06/20/13 11:24 AM ET

Consumers saved nearly $4 billion on their insurance premiums last year because of new rules in President Obama's healthcare law, the administration said Thursday.

The Health and Human Services Department (HHS) said consumers saved $3.9 billion last year from new rules that govern insurance companies' spending. The rules have saved consumers roughly $5 billion over the past two years, HHS said.

HHS highlighted the savings Thursday as an immediate benefit of the Affordable Care Act and evidence that the law will help make insurance more affordable.

The Obama administration has consistently and aggressively promoted elements of the law that have had an immediate impact, as it tries to reverse negative public opinion and sell a skeptical public on the law as its major provisions are about to take effect.

“The healthcare law is providing consumers value for their premium dollars and ensuring the money they pay every month to insurance companies goes toward patient care,” HHS Secretary Kathleen Sebelius said in a statement.

The health law requires insurance plans to spend 80 or 85 percent of their premiums on medical costs, leaving only the remaining 15 or 20 percent for profit and administrative expenses. They must pay a rebate if they miss the threshold.

Consumers saved money as insurers changed their premiums to comply with the requirement, HHS said in a report Thursday.

The new rules first took effect in 2011. That year, insurers paid out more than $1 billion in rebates. Last year saw fewer rebates and more up-front savings, according to the HHS report.

Consumers saved $3.4 billion last year as insurance companies lowered their premiums to comply with the new rules. Consumers also received $500 million in rebates from insurers that did not meet the new standards.
 
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Your Opinions and Comments

 
Mr. Tibbs  
Floresville  
June 27, 2013 9:51am
 
 
The low information voter is key to left leaning policies and support. It is a sad commentary on the direction of our country.
 
 
4 th Generation Texan  
Sutherland Springs  
June 27, 2013 9:28am
 
 
"new guy" not only are you naive, but you are fool to believe there won't be death panels. We saw one in action just a week ago when Sabellius had the authority ... Read More Read More
 
 
Senior Citizen  
Wilson County  
June 27, 2013 12:09am
 
 
To David: LIKE!
 
 
David Fuller  
San Antonio, TX  
June 26, 2013 10:40pm
 
 
I have personally saved 5 billion dollars in the last two years on my health insurance. I have even saved or created my own job!
 
 
New Guy  
Wilson County  
June 25, 2013 3:58pm
 
 
4th, your meds are free now thanks to the law and the death panels are an internet myth. April's fool on you.
 
 
4 th Generation Texan  
Sutherland Springs  
June 25, 2013 10:01am
 
 
'new guy'...they won't be so happy when the full law goes into effect in a couple of years. And, these old folks won't be quite so happy when they have to have a beaurocrat ... Read More Read More
 
 
New Guy  
Wilson County  
June 24, 2013 12:08pm
 
 
Senior: I know a few people who are very happy that they are not denied coverage, so there are pro and cons to the health bill. Bottomline, it is the law of the land and ... Read More Read More
 
 
Delightful  
Downtown  
June 24, 2013 11:44am
 
 
As the quote from the movie says, "SHOW ME THE MONEY".

This article is pure political spin!
 
 
4 th Generation Texan  
Sutherland Springs  
June 23, 2013 2:15pm
 
 
LOL! A bull can call crap anything he wants, but it still stinks!
 
 
7th Generation La Vernian  
La Vernia  
June 21, 2013 11:10pm
 
 
Mine has stayed the same.
 

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