Congresswoman Laura Richardson released the following statement today in response to an announcement by the Department of Health and Human Services (HHS) that 12.8 million Americans will benefit from $1.1 billion in rebates from insurance companies this summer:
"The Affordable Care Act that was passed by the Democratic 111th Congress and signed into law by President Obama continues to provide important benefits to Americans. In addition to providing coverage for persons with preexisting conditions, the Affordable Care Act's "80/20" rule requires insurance companies to spend at least 80 percent of consumers' premium dollars on medical care and quality improvement. Insurance companies that fail to meet the 80/20 ratio must rebate the difference to policyholders no later than Aug. 1, 2012."
"Because of the rule, also known as the Medical Loss Ratio (MLR), many insurance plans lowered or improved their insurance plans to meet the standard. This is one of the ways the 80/20 rule is bringing value to consumers for their health care dollars."
"California is the largest beneficiary of the 80/20 rebate program. Californian consumers will be receiving $74 million in rebate funds from insurance companies, benefiting 1.8 million residents. Consumers owed a rebate will see their value reflected in one of the following ways: (1) a rebate check in the mail, (2) a lump-sum reimbursement to the same account that they used to pay the premium or (3) a reduction in their future premiums."
"I co-sponsored the Affordable Care Act, which is working for Americans. It is my hope and belief that the Supreme Court will uphold validity of this law when it issues its ruling later this month."