Mark Udall said new data released today by the U.S. Department of Health and Human Services shows that the Affordable Care Act is working for Coloradans by preventing health insurance companies from significantly raising their rates without justification. The report, based on new rate-review rules in the health law, shows that consumers saved an estimated $2.1 billion on health insurance premiums due to the new rules.
"This report underlines how the Affordable Care Act is putting money back in Coloradans' pockets and strengthening our economy," Udall said. "Rising health care costs place strains on consumers and our businesses. Every dollar the Affordable Care Act saves them is a dollar they can reinvest in their families and use to grow our economy. This report shows just one more way the Affordable Care Act is strengthening Colorado consumers' positions in the health insurance market."
The savings announced today resulted from the rate-review provisions of the Affordable Care Act, whereby health insurance companies proposing rate increases of 10 percent or more must publicly submit the increases for review and justify their actions. The rate-review process has helped save an estimated $1 billion for Americans. Additionally, the Affordable Care Act's Medical Loss Ratio -- requiring that insurance companies spend 80 percent of their premium receipts on actual health care benefits and quality improvement measures -- has delivered rebates worth $1.1 billion to nearly 13 million consumers.
According to the report, the review has saved 30,466 Coloradans on the individual insurance market more than $11.3 million.
Udall has been a vocal supporter of the ACA as a tool to expand health coverage for thousands of Coloradans. He recently hailed another study that showed how the law has saved Coloradans $43.8 million in prescription drugs costs since 2010 and more than $8.7 million since the start of 2012. Earlier this summer, Udall announced expanded health care services for women, and heralded the U.S. Supreme Court's decision to affirm the health care law's constitutionality.