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Obama To Buy Votes With Insurance Rebates

From CNN’s Money.Com:

Your insurance company may owe you $127

By Jessica Dickler
April 26, 2012

NEW YORK (CNNMoney) — Thanks to a provision in the health care reform law, millions of consumers will be receiving rebates from their insurers this summer.

By Aug. 1, insurers that failed to meet one of the early guidelines of the Affordable Care Act are going to issue rebates averaging $127 to certain policyholders, according to estimates from the Kaiser Family Foundation.

Last year, the Affordable Care Act started requiring health insurers to spend a certain percentage of the premium payments they receive toward patient care, such as doctor’s visits and hospital stays, and quality improvement activities, including discounted gym memberships or wellness brochures, instead of things like administrative and marketing costs.

Because, after all, Mr. Obama knows better than the insurance companies what they should be spending their money on.

Under the law, large employer-sponsored plans must spend 85% of a policyholders’ premiums this way, while insurance companies that cover individuals and small businesses have to spend at least 80%. If an insurer fails to meet that threshold, they must issue a refund.

Now isn’t that co-incidental timing? These checks will be showing up in the mail in September. More free money from ‘Obama’s Stash.’

Based on insurers’ recent filings to the National Association of Insurance Commissioners, those rebates will total $1.3 billion altogether this year, according to Kaiser.

And, needless to say, the insurance companies will simply absorb this $1.3 billion dollar hit. They won’t pass the cost on to other policy holders.

A large share of this money, or $426 million, will go to consumers who bought their own insurance through one of 215 plans. Nationwide, these consumers — roughly 3.4 million people — will each receive an average rebate of $127, Kaiser said in its report…

So, in actual fact, these $127 dollar checks are less than one third of the total amount. The actual money going to policy holders could be much higher.

Those insured through a private employer or a state or local government plan could see nothing at all. Those rebates will mostly go to the group policy holder, although the money could be passed on to employees who contributed a portion of their paycheck to their premium last year

What employer is going to withhold this ‘free money’ from Obama? There would be hell to pay.

This article was posted by Steve on Friday, April 27th, 2012. Comments are currently closed.

One Response to “Obama To Buy Votes With Insurance Rebates”

  1. AcornsRNutz says:

    Meanwhile, thanks to the obummer, Tricare no longer pays for urgent care visits for military dependents

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