NEW YORK, June 22 -- Rep. Charles B. Rangel, D-N.Y. (15th CD), issued the following news release:
Congressman Charles B. Rangel announced that reporting for 2011 showed that nearly 13 million Americans will benefit from $1.1 billion in rebates from insurance companies this summer, thanks to the Affordable Care Act. This amounts to an average rebate of $151 for each family covered by a policy.
"More than one million New Yorkers will get a rebate from health insurance plans this summer because they insurance companies failed to spend at least 80 cents of every dollar on healthcare claims and quality improvements initiatives as required by the healthcare law," Rangel said. "This is just one of the many protections provided to the consumers. President Obama's Affordable Care Act ends insurance company abuses."
The 'Medical Loss Ratio (MLR)' rule in the healthcare reform law mandates insurance companies to spend 80% of premiums on medical care and quality. Insurance companies now must reveal how much of premium dollars they actually spend on healthcare and how much they spend on administration. If it is revealed they have spent less than 80% on care, the companies must rebate the difference between what they spent on care and what they were supposed to spend on care.
In New York, 83,541 participants in the individual health insurance markets are owed over $6 million; participants in the large group health insurance markets (generally employed by large businesses) are owed about $77 million; participants in the small group health insurance markets (generally employed by small businesses) are owed $3.7 million for an average rebate of $632 per family. Insurance companies owe $86.5 million in total to the people of New York and must pay by August 1 of this year.
"The MLR rule is only one of many very important provisions in the Affordable Care Act," Rangel said. "It maximizes the value of the dollars New Yorkers and the rest of America spend on healthcare. That is critical, especially in the current weak economy. These rebate checks will free up money for other uses, like food, rent or education."
Rangel was the House sponsor of the Affordable Care Act signed into law by President Barack Obama in 2010, legislation that allows all Americans to have access to quality and affordable healthcare.
TNS hc11-120623-JF78-3922202 StaffFurigay