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Health Care Law Saves Consumers $1.2 Billion Nationwide
‘Rate review’ provision gets results (September 12)
A new report from the Department of Health and Human Services (HHS) shows that 6.8 million consumers saved an estimated $1.2 billion on health insurance premiums in 2012, due to the “rate review” provision of the Patient Protection and Affordable Care Act (PPACA).
The federal rate-review rules under the PPACA were implemented on September 1, 2011. These rules require insurance companies in every state to submit for review and to justify any proposed health-insurance premium increases of 10% or more.
To assist states in this effort, the PPACA provides Health Insurance Rate Review Grants to enhance rate-review programs and to bring greater transparency to the process. Forty-six states, the District of Columbia, and five territories have been awarded these funds.
According to the HHS, the PPACA’s rate-review provision has put an end to the days when insurance companies could raise health insurance premiums by double-digit percentages with little oversight.
Because of rate review, the new report shows that consumers have saved approximately $1.2 billion over the past year in the individual and small-group markets.
Source: HHS; September 12, 2013.