The health care reform timeline for rebates

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health care reform timeline

Estimates say that 2012 will see a total of $1.3 billion but that there is a wide variety among states.

An analysis performed by the Kaiser Family Foundation has estimated that there will be rebates totaling $1.3 billion for consumers and businesses by the end of August this year.

This money will come from insurance companies that spent more than the maximum allowed on non-care expenses.

The Affordable Care Act states that only 20 percent of the income taken in from premiums can be spent on administrative and other costs that are not directly related to care, or rebates must be issued to the policyholders.

The large employer market will see $541of the total in rebates.

The small business market, on the other hand, will make up $377 million, and $426 million will go to individuals and families who have purchased their coverage on their own. The group marketplace rebates will typically be received by the employers and will either be applied to improving the benefits available to employees, or will simply be passed directly down to those workers.

It is anticipated that 31 percent of consumers will receive rebates in the individual market. Twenty eight percent in the small employer group market will see a rebate, and 19 percent of the large employer group market will receive them.

Overall, the amount received by consumers will vary widely from one state to the next. While consumers in some states won’t receive any rebates at all, whereas 92 percent of those in Texas and 86 percent of those in Oklahoma will have rebates of some form.

The CEO and president of the Kaiser Family Foundation, Drew Altman, said that “This study shows that asking insurance companies to put more of their premium dollar towards patient care rather than administration and profits is not only popular but also effective.” He went on to say that “There are tangible benefits for consumers and employers.”

The size of the rebates also vary from one state to the next. The health care reform timeline shows that so far individuals and businesses in Texas will receive a total of $186 million, while those in Florida will have $142 million, but Hawaii’s insurers will not issue any rebates at all.

 

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