NEW JERSEY CONSUMERS TO RECEIVE OVER $106.4 MILLION IN HEALTH INSURANCE REBATES THANKS TO AFFORDABLE CARE ACT

For Immediate Release:
April 26, 2012

(NEW JERSEY) – New Jersey consumers will receive $106,462,468 in health insurance rebates as a result of provisions of the Affordable Care Act, according to a Kaiser Family Foundation report released earlier today.

“This year, New Jersey consumers will actually be getting money back from their insurance companies,” said Joshua Henne, New Jersey spokesman for Know Your Care. “This sort of rebate would have been entirely unheard of a few years ago. Thanks to President Obama’s Affordable Care Act, we can now come to expect this sort of transparency and consumer protection.  It’s nice to finally have someone on our side and looking out for the best interests of consumers.”

The Affordable Care Act requires that insurance companies spend at least 80% of premiums on patient care. This provision, the Medical Loss Ratio (MLR), guarantees that consumer premiums are going back to the consumers themselves – and not used for CEO bonuses or corporate retreats. Insurance companies who do not meet this 80% mark must pay rebates to consumers. The amount depends on the extent to which the insurer fell below that threshold.

The MLR provision is just one of many ways that the Affordable Care Act increases transparency and extends new protections to American consumers.  The rule went into effect on January 1^st, 2011. The first rebates to consumers will be issued this year. However, in the small group market, one insurer in New Jersey has already paid $18,934,071 in rebates to consumers.

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The Affordable Care Act was signed into law by President Barack Obama on March 23^rd, 2010. Over the past two years, it has been a tremendous help to millions of Americans as this real reform lowers costs and guarantees more choice for consumers.  As additional provisions are implemented, ACA will continue to benefit millions more people.