Thursday, April 26, 2012
A new report finds that insurance companies will have to return more than $1 billion this year to consumers and employers to meet a requirement in President Barack Obama's overhaul.
That's real money, according to Larry Levitt of the nonpartisan Kaiser Family Foundation. And Levitt says it's one of the most tangible consumer benefits to date from the law.
This is the first time such rebates are due.
The law requires insurers to spend at least 80 percent of the premiums they collect on medical care and quality improvements — or issue rebates to policyholders.
The insurance industry says consumers should take little comfort from the rebates. The companies expect premiums to go up overall as a result of new benefits and other requirements.