Today, Rep. Hank Johnson (GA-04) announced that a new report from HHS concludes that provisions of the Affordable Care Act saved consumers $3.9 billion on premiums in 2012.
"This new report finds that consumers saved a total of $3.9 billion on premiums in 2012, primarily due to the so-called "80/20' rule in the Affordable Care Act," Rep. Johnson said. "Nationwide, 77.8 million consumers saved $3.4 billion up front on their premiums as insurance companies operated more efficiently. Additionally, consumers nationwide will save $500 million in rebates, with 8.5 million enrollees due to benefit from an average rebate of around $100 per family this summer."
"In Georgia, nearly a quarter million residents will benefit from $15 million in rebates from insurance companies this summer, averaging about $82 per family, thanks to the Affordable Care Act," Rep. Johnson added.
Created through the Affordable Care Act, the "80/20" rule requires insurers to spend at least 80 cents of every premium dollar on patient care and quality improvement. If they spend a higher amount on other expenses like profits and red tape, they owe rebates back to consumers. As a result, the report found that, compared to 2011, insurance companies devoted a greater portion of premium dollars to patient care and less to expenses like profits and red tape -- in order to comply with the law's requirement. In short, the data in the report show that the law has motivated many plans to lower prices or improve their coverage to meet the new standard.
"The Affordable Care Act is providing consumers value for their premium dollars and ensuring that more of the money they pay every month to insurance companies goes toward patient care," Rep. Johnson said. "Today's report shows that more Americans are benefiting from the tools created under the Affordable Care Act to keep consumer costs down."