New Jersey Consumers Save Big On Insurance Premiums Thanks To ObamaCare

For Immediate Release:
Wednesday, September 12th, 2012

Affordable Care Act saved $2.1 billion for American consumers

(NEW JERSEY) - “ As a result of ObamaCare, Americans have already saved an estimated $2.1 billion on health insurance premiums. Once again, the Affordable Care Act is protecting consumers from excessive costs.

1. In every state, insurance companies must submit a justification for public review if they want to raise premiums by 10% or more. This protects consumers from excessive “ and unjustified -- rate increases. Rate reviews have helped save an estimated $1 billion for American consumers.
2. The 80/20 rule ensures that insurance companies spend at least 80% of premium dollars on patient care. Those companies failing to meet these spending requirements must write checks back to their customers for the difference. Consumers have received rebate checks for $1.1 billion thanks to the 80/20 rule.

"Thanks to Obamacare, New Jerseyans are now saving millions of dollars on healthcare premiums," said Joshua Henne, New Jersey spokesman for Know Your Care. "For the first time ever, millions of consumers across the country are actually getting money back from their insurance companies. These new rules are bringing transparency and accountability to the healthcare marketplace."

To assist in this effort, the Affordable Care Act provides states with Health Insurance Rate Review Grants to enhance their rate review programs and bring greater transparency to the process. 42 states have used their rate review grant funds to make the rate review process stronger and more open. The rate review report released yesterday is available at: http://www.healthcare.gov/law/resources/reports/rate-review09112012a.html.

New Jersey is using their grant funding in several key ways:

• New Jersey improved its review of health insurance rate increases. Prior to receiving the grant funding, filing of comprehensive medical rates electronically in the individual, small group, and large group markets was optional and not widely observed. Today, all rate filings are now received electronically, which has helped New Jersey maintain filing information.
• Additionally, in an effort to standardize filing submissions, for rates filed on or after July 1, 2012, carriers in New Jersey will be required to submit two worksheets and a checklist to ensure all documents are properly submitted and in the correct format.
• Finally, New Jersey has partnered with the Rutgers Center for State Health Policy to engage stakeholders in a series of forums to better understand the impact of rate increases and the type of information wanted by consumers.

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The Affordable Care Act was signed into law by President Barack Obama on March 23rd, 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, ObamaCare will continue to benefit millions more people.