- McDonald nomination unanimously referred to full Senate
- Chuck Norris honorary chairman of NRA voter registration campaign
- GOP outraged Obamacare investigators able to get coverage with fake IDs
- Family removed from Southwest flight over tweet about rude agent, dad says
- Michael Bloomberg thumbs FAA ban, plots course to Israel
- California bans full-contact football practices in off-season
- Thune: Downed fighter jets show more evidence of separatist capabilities
- Obama tells DNC fundraising crowd: ‘I’m not overly partisan’
- Chambliss: Downed jet ultimately goes back to Putin
- Perdue strategy: Run against Reid, Obama, Pelosi
Rebates from health care law to top $1B, Kaiser study says
Question of the Day
More than 3 million health insurance policyholders and thousands of employers will share $1.3 billion in rebates this year, thanks to President Obama’s health care law, a nonpartisan research group said Thursday.
The rebates should average $127 for the people who get them, and Democrats are hoping they’ll send an election-year message that Mr. Obama’s much-criticized health care overhaul is starting to pay dividends for consumers. Critics of the law call that wishful thinking.
The law requires insurance companies to spend at least 80 percent of the premiums they collect on medical care and quality improvement or return the difference to consumers and employers. Although many large employer plans already meet that standard, it’s the first time the government has imposed such a requirement on the entire health insurance industry.
“This is one of the most tangible benefits of the health reform law that consumers will have seen to date,” said Larry Levitt, an expert on private insurance with the Kaiser Family Foundation, which analyzed industry filings with state health insurance commissioners to produce its report. Kaiser is a nonpartisan information clearinghouse on the nation’s health care system.
Still, with employer coverage averaging about $5,400 a year for an individual, $15,100 for a family, $127 isn’t a whole lot of money. It amounts to 2 percent of an individual plan, and a little less than 1 percent of the family premium.
And the insurance industry says consumers should take little comfort from the rebates, because premiums are likely to go up overall as a result of new benefits and other requirements of the law.
“The net of all the requirements will be an increase in costs for consumers,” said Robert Zirkelbach, spokesman for America’s Health Insurance Plans, the main industry trade group.
“Given that health care costs are inherently unpredictable, it’s not surprising that some plans will be paying rebates to policyholders in certain markets,” Mr. Zirkelbach added.
But the Kaiser report said the rebate requirement may be acting as a brake on the industry, discouraging insurers from seeking big premium increases to avoid having to issue refunds later and face possible criticism.
“The presence of these thresholds and the corresponding rebate requirement have provided an incentive for insurers to seek lower premium increases than they would have otherwise,” the report said. “This ‘sentinel’ effect on premiums has likely produced more savings for consumers and employers than the rebates themselves.”
The study found the largest rebates will go to consumers and employers in Texas ($186 million) and Florida ($149 million), where Govs. Rick Perry and Rick Scott, both Republicans, have been among the staunchest opponents of the federal law. Both states applied for waivers from the 80 percent requirement and were turned down. Hawaii is the only state in which insurers are not expected to issue a rebate.
TWT Video Picks
Retailer pays a price for getting too close to Obama
- CARSON: Costco and the perils of mixing politics and business
- House task force to recommend National Guard on border, faster deportations
- Obama orders Pentagon advisers to Ukraine
- Two Ukrainian fighter jets shot down
- HURT: The cost of 'free' water in Detroit
- David Perdue defeats Jack Kingston in Georgia Republican Senate primary runoff
- Beretta moving to Tennessee over Maryland gun laws
- DEACE: How to go from civil rights icon to bigot in one quote
- D.C. appeals panel deals big blow to Obamacare subsidies
- IRS seeks help destroying another 3,200 computer hard drives
Obama's biggest White House 'fails'
Celebrities turned politicians
Athletes turned actors
20 gadgets that changed the world
Fighting in Iraq