Insurers are issuing refunds thanks to the provisions of the Affordable Care Act
Millions in insurance premiums are being returned to consumers throughout the U.S., according to the Department of Health and Human Services. The federal agency has released data showing that several insurance companies have been unable to meet the medical loss ratio of the Affordable Care Act. This provision requires insurance companies to spend no less than 80% of the money they collect from premiums on improving medical care. If insurers cannot comply with this provision, they must return premiums to policyholders.
$322 million to be refunded to 8 million people throughout the US
In Missouri, some 352,000 people will be receiving more than $14 million in refunds. Refunds in Illinois are expected to be more than $8 million, with 108,000 policyholders receiving this money. Overall, the insurance industry will be refunding $332 million to nearly 7 million policyholders throughout the U.S. Consumers will receive their refunds in many different ways, including reimbursements and credit on their insurance policies.
_________________________Random Success Quotes to Remember ~ “Successful people do what unsuccessful people are not willing to do. Don't wish it were easier; wish you were better..” - Jim Rohn
Provisions of the Affordable Care Act may be saving consumers a great deal of money on their health insurance policies
According to the Department of Health and Human Service, consumers saved some $4.1 billion in insurance premiums in 2013, largely due to the medical loss ratio provision of the Affordable Care Act. The health care law has encouraged insurance companies to spend their money more wisely and spend this money on medical care benefits and improving the services that they offer to consumers.
Some small insurers are having trouble complying with the costly provisions of the health care reform law
Small insurers have been able to meet the medical loss ratio provision relatively easily, but large organizations have had more trouble. Changes in the health care landscape have proven to be difficult to adapt to, and some companies are being forced to return funds to their policyholders. Most of the large organizations that have to refund premiums are in financial situations that allow them to absorb the financial loss easily. Refunds have a more prominent impact on smaller companies that already have limited capacity.