It's debatable if the fiduciary standard is 'higher' than suitability. But the better question might be, who's holding the bar?
WASHINGTON, June 21 -- Rep. Rosa L. DeLauro, D-Conn. (3rd CD), issued the following news release:
Today, Congresswoman Rosa DeLauro (CT-3) announced that 47,593 Connecticut residents will receive a grand total of $5,647,013 in rebates from insurance companies this summer thanks to the landmark Affordable Care Act. That averages out to $168 per family.
"This news will be welcomed by tens of thousands of Connecticut residents struggling with the high costs of health insurance. This is one of my many reasons why my vote for the Affordable Care Act was one of the proudest of my career. The Affordable Care Act is providing consumers better value for their premium dollars and ensuring that more of the money they pay every month to insurance companies goes toward patient care. I look forward to seeing even more Connecticut residents benefit from this law in the coming years."
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 from the Department of Health and Human Services 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.
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