Workers expect their defined contribution plans to play a greater role in their retirement income than annuities.
WASHINGTON, June 21 -- The office of Sen. Mark Udall, D-Colo., issued the following news release:
Mark Udall welcomed news today that health insurance companies returned $11.5 million in rebates to Colorado consumers thanks to the health care law's Medical Loss Ratio standard (http://www.cms.gov/CCIIO/Resources/Forms-Reports-and-Other-Resources/Downloads/2012-medical-loss-ratio-report.pdf), which requires that insurers spend at least 80 percent of every premium dollar on patient care and quality improvements. The 150,492 affected Coloradans will begin to receive these rebates this summer.
"These rebates to over 150,000 Coloradans show one of the ways that the Affordable Care Act is making sure consumers are getting what they paid for with their premiums: health care, not increased insurer profits," Udall said. "Making sure more premium dollars are directed toward patients and not bureaucracy means lower costs, better quality and greater health care access for all Coloradans."
The Affordable Care Act's Medical Loss Ratio standard requires that health insurers that spend excessive amounts on bureaucracy, red tape, or executive salaries -- more than 20 percent of the premiums they collect -- send their customers rebates by August 1 of the following year. More than 8.5 million Americans will receive a total of $500 billion in rebates this summer (http://www.cms.gov/Newsroom/MediaReleaseDatabase/Press-Releases/2013-Press-Releases-Items/2013-06-20.html) thanks to the Affordable Care Act.
"This new standard is increasing transparency and accountability, promoting better business practices and competition among insurance companies, and ensuring consumers receive value for their premium dollars," Health and Human Services Secretary Kathleen Sebelius said. "Today's announcement shows that more Coloradans are benefiting from the tools created under the Affordable Care Act to keep consumer costs down."
Coloradans owed a rebate will see their value reflected in one of the following:
* A rebate check in the mail;
* A lump-sum reimbursement to the same account that they used to pay the premium if by credit card or debit card;
* A reduction in their premiums; or,
* Their employer using rebates to improve their health coverage.
Udall has been a vocal supporter of the various cost-saving provisions in the Affordable Care Act and how the law has expanded health coverage for thousands of Coloradans. He recently hailed a study showing how the law saved thousands of Colorado senior citizens on their prescription drug costs (http://www.markudall.senate.gov/?p=press_release&id=2769). Udall also has welcomed data showing how the law has saved Coloradans from unjustified health insurance rate hikes (http://www.markudall.senate.gov/index.cfm?p=press_release&id=2707).
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