The Affordable Care Act requires insurance companies to spend at least 80% of premiums on medical care and efforts to improve the quality of care, instead of profit or overhead. If they don’t, insurers have to send consumers a rebate to meet this threshold. Although insurance companies still set premium rates, the ACA requires that insurance companies post and justify any proposed increase of 10% or more.
In 2012 thanks to this provision, 80 million consumers saved $3.4 billion upfront on their premiums, and insurers sent 8.5 million enrollees an average rebate of approximately $100 per family.
“The Affordable Care Act is making sure that premium dollars work for consumers, instead of companies. Already, here in New Mexico, approximately 17,500 people received a rebate from their insurance company in 2012. Unfortunately, Republicans want to take these protections away and put insurance companies in the driver’s seat again. The GOP keeps proving that they care more about their own political gains and the profit margins of insurance companies, than the well-being of their constituents,” commented DPNM Chairman Sam Bregman.