What!? ... Insurance Companies Will Actually Be Mandated To Pay For Care?! Ourageous!
Today, the Centers for Medicare & Medicaid Services (CMS) issued a final regulation that will ensure health insurance companies spend at least 80 percent of consumers’ health insurance premiums on medical care, not income, overhead and marketing. Insurance companies that fail to meet the new standard are required to provide a rebate to consumers. Known as the Medical Loss Ratio (MLR), this rule provides unprecedented transparency and accountability of health insurance companies for customers. Created by the Affordable Care Act, the MLR requirements provide protection and value to approximately 74.8 million insured Americans. Estimates from last year indicate that, starting in 2012, up to nine million Americans could receive rebates worth from $0.6 to $1.4 billion. However, early reports suggest insurers lowered premium growth rather than face the prospect of providing rebates – a win-win for consumers. “Under the Affordable Care Act, consumers are already seeing better value from their health insurance companies,” said CMS Acting Administrator Marilyn Tavenner. “If your insurance company doesn’t spend enough of your premium dollars on medical care or quality improvement this year, they’ll have to give you rebates next year. This will bring costs down and give insurance companies the incentive to focus on what matters for patients – high quality health care.” MLR rules took effect on January 1, 2011 but today’s final rule makes modifications and provides certainty to how the MLR is calculated. These modifications are based on public comments solicited in an earlier version of the rule published by CMS in the spring. The modifications made in the new rule: [Click Link To Read All Rules That Benefit YOU!]Press Releases
Details for: AFFORDABLE CARE ACT HELPING CONSUMERS GET BETTER VALUE FOR THEIR HEALTH CARE DOLLARS
For Immediate Release:Friday, December 02, 2011Contact:CMS Office of Public Affairs
202-690-6145
AFFORDABLE CARE ACT HELPING CONSUMERS GET BETTER VALUE FOR THEIR HEALTH CARE DOLLARS
NEW PROPOSAL MAKES REBATES TO CONSUMERS TAX FREE, INCREASES TRANSPARENCY
