Today, Health and Human Services (HHS) Secretary Kathleen Sebelius announced that 1,487 Alabama residents will benefit from $314,374 in rebates from insurance companies this summer, averaging $248 per family, due to the Affordable Care Act.
Nationwide, 77.8 million consumers saved $3.4 billion up front on their premiums as insurance companies operated more efficiently. Additionally, consumers nationwide will save $500 million in rebates, with 8.5 million enrollees due to receive an average rebate of around $100 per family.
Created under the Affordable Care Act, the Medical Loss Ratio standard, also known as 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 an excessive amount on profits and red tape, they owe rebates back for the difference no later than August 1, 2013.
“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,” said Secretary Sebelius. “Today’s announcement shows that more Alabamians are benefiting from the tools created under the Affordable Care Act to keep consumer costs down.”
The law has motivated many plans to lower prices or improve their coverage to meet the standard. Other Alabamians will see their value reflected through rebates later this summer.
Alabamians 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
• their employer using rebates to improve their health coverage
Insurance companies that do not meet the standard will send consumers a notice informing them of the rule The notice will also let consumers know how much the insurer did or did not spend on patient care or quality improvement, and how much of that difference will be returned as a rebate.
Polling Place Distirct 1A
WALTON PARK RECREATION CENTER - 122 WALTON PARK DRIVE
Polling Place District 1B
ANDREW BELLE COMMUNITY CENTER - 1270 LAKE STREET
Polling Place District 2A
ROY DRIGGERS BUILDING (CIVIC CENTER) - 126 N. ST. ANDREWS STREET
Polling Place District 2B
WIREGRASS RECREATION CENTER - 620 6TH AVENUE
Polling Place District 3A
HOUSTON COUNTY FARM CENTER - 1701 E. COTTONWOOD ROAD
Polling Place District 3B
NATIONAL GUARD ARMORY - 1842 3RD AVENUE
Polling Place District 4A
DOTHAN UTILITIES COMPLEX - 200 KILGORE DRIVE
Polling Place District 4B
DOUG TEW RECREATION CENTER - 300 GARLAND STREET
Polling Place District 5A
WESTGATE RECREATION CENTER - 501 RECREATION ROAD
Polling Place District 5B
WESLEY MANOR RETIREMENT CENTER - 718 HONEYSUCKLE ROAD
Polling Place District 6A
VAUGHN-BLUMBER CENTER - 2715 FLYNN ROAD
Polling Place District 6B
WIREGRASS COMMONS MALL COMMUNITY ROOM - 900 COMMONS DRIVE