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Final Rule Issued On Consumer Rebates And Notification

By Julie Appleby

May 11th, 2012, 12:52 PM

Most health insurers this year must at least inform policyholders that their coverage met the minimum spending threshold under the federal health law, even if they don’t owe consumers a rebate, a final rule out Friday says.

The rule splits the difference between industry, which did not want to send any notice to those not owed a rebate, and consumer groups, which said informing policyholders of the exact percent that each insurer spent on medical care would be valuable. Under the rule, the notices do not need to include the exact figure. The rule says such notices are a one-time effort to reflect spending in 2011.

Insurers are required to offer rebates if they fail to spend at least 80 percent of premiums on medical care or quality improvements.

5 Responses to “Final Rule Issued On Consumer Rebates And Notification”

  1. Sam says:

    Will someone please tell me why we need health care insurance companies? If we had single-payer health care we would not have to pay for the “middle man” who serves no other purpose than to scrape off their margin and fatten up their wallets. In the absence of the sanity of single-payer, when the health care exchanges open for business in 2014, we will all go to a web site and pick the plan that suits our needs and let these corrupt carpetbaggers dry up and blow away once and for all! Shysters!

  2. It’s the money, Sam. In our society, making money isn’t everything, it’s the only thing.

    Those of us who believe government can be the vehicle for pooling our risk at the lowest cost are elbowed out of the discussion by people blinded by love of greed and whose anti-cooperation beliefs approach cult status.

  3. frank says:

    every government program loses money…this one will not be different.

  4. The gov’t isn’t selling anything in the marketplaces. Think of it as a huge mall where the PRIVATE insurance companies come in and set up shop.

    Like all malls there are rules. Insurance companies can’t exclude people with pre-existing conditions. Their plans have to cover basic services like well visits, pregnancy, emergency room visits, etc. The rules are consumer protections.

    The real reasons people don’t like ObamaCare have little to do with the law because so few people know it. The reform law is just a start.

    For-profit insurance companies answer to shareholders not to the well-being of a workforce that is supposed to make us the best in the world.

  5. frank says:

    if that business at your mall does not show a profit it will not be there. our government will come to the rescue to provide those “free” services.