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Rangel Announces New Healthcare Provisions to be Implemented in the New Year


Location: Washington, DC

"In the New Year, new and important healthcare regulations will help Americans become healthier and stronger," announced Congressman Charles B. Rangel.

Beginning January 1, 2011, the "medical loss ratio" provision of the Affordable Care Act will require insurance companies to spend 80 to 85 percent of premiums on care of patients and consumers, rather than on administrative costs. If they don't, the insurance companies will be required to provide a rebate to their customers starting in 2012.

"I believe this new regulation will strengthen patient confidence in our health care system. The insurance companies should not be in charge over our nations' health. We passed the healthcare reform in Congress to give patients and their doctors the control over their health, which is important to make America strong," said Congressman Charles Rangel.

Once the rule is in effect, up to 74.8 million insured Americans will receive more value for their premium dollar. Over 20 percent of consumers who purchase coverage in the individual market today are enrolled in plans that spend more than 30 cents of every premium dollar on administrative costs.

Moreover, estimates indicate that up to 9 million Americans could be eligible for rebates starting in 2012 worth up to $1.4 billion. Average rebates per person could total $164 in the individual market. Important details regarding the new regulation an additional healthcare benefits for seniors are included below.

"In 2010, my Democratic colleagues and I kept our promises by passing the historic heathcare reform bill to bring more accessibility, affordability, and accountability in our healthcare system. We will continue the fight to preserve these gains for the American people in the New Year and years to come," Rangel added.

The following provisions of the Affordable Care Act take effect on January 1, 2011. HHS has updated the state-by-state information on the implementation of health reform that is available at


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