Madison – Americans have saved an estimated $2.1 billion on health insurance premiums as a result of two important provisions of Obamacare – officially called the Affordable Care Act – that protect citizens from excessive premiums. This includes 288,984 Wisconsin residents who have saved a total of $14,551,793.
In every state, insurance companies must submit a justification for public review if they want to raise premiums by 10 percent or more. This protects citizens from excessive – and unjustified – rate increases. Rate reviews have helped save an estimated $1 billion for American citizens, including $4,182,000 for 6,172 Wisconsin residents.
The 80/20 rule ensures that insurance companies spend at least 80 percent of premium dollars on patient care. Those companies that do not meet those spending requirements must write checks back to their customers for the difference. Americans have received rebate checks for $1.1 billion thanks to the 80/20 rule, including $10,369,793 in savings for 282,812 Wisconsin residents.
“Rate review and requiring insurance to spend 80 percent of premiums on patient care have brought transparency and accountability to health insurance companies,” said Doug Hill, director of Know Your Care Wisconsin. “Because of Obamacare, Wisconsinites are saving millions of dollars on insurance premiums. And for the first time ever, many are getting money back from their insurance companies.”
To assist states in this effort, the Affordable Care Act provides states with Health Insurance Rate Review Grants to enhance their rate review programs and bring greater transparency to the process. A total of 42 states have used their rate review grant funds to make the rate review process stronger and more transparent. Wisconsin is using its $3,958,844 in grant funding to standardize its filing formats and enhance its rate review procedures. To implement these changes, the state developed a rate tracking system to it to monitor, analyze, and publicize rate-filing activity.
Background:
Rate review, Wisconsin savings: http://www.healthcare.gov/law/resources/reports/rate-review09112012a.html#_edn5
Wisconsin rate review grant description: http://www.healthcare.gov/law/resources/reports/rate-review09202011a.pdf
80/20 rule, Wisconsin savings: http://www.healthcare.gov/law/resources/reports/mlrrebates06212012a.html
Original U.S. Department of Health and Human Services release: http://www.hhs.gov/news/press/2012pres/09/20120911a.html
