ObamaCare Gives $1.1 Billion in Cash Back to the American People

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Last updated on February 7th, 2013 at 03:55 pm

Hidden behind the right’s propaganda about a massive tax hike, President Obama’s healthcare law is forcing health insurance companies to issue a refund worth $1.1 billion dollars to Americans and business starting August 1st, 2012.

This “massive tax hike” the the GOP talks about, is actually smaller than Reagan’s tax hike of 1982. But really? Those are facts, so the GOP leaders don’t care about that.

The reason for this rebate is because in the Affordable Care Act, it mandates a medical loss ratio of 80%- 20%.

As Reuters is reporting,

“The rebates stem from a provision of the healthcare law that requires insurers to spend at least 80 percent of premiums on medical care or quality improvements, rather than advertising and administrative costs, salaries or bonuses. Insurers that devote less to actual healthcare services must pay customers the difference.

About 4.1 million people who are covered by individual insurance plans would receive a direct rebate, which HHS said would average $152 per family.

But the remaining 8.7 million beneficiaries are covered through the small and large employer markets and would receive only a portion of the rebate value depending on their share of premium costs. Officials said employers may choose to pass along the value of the rebate due their employees in forms other than cash, such as lower premiums or added benefits.”

The Republicans are threatening to take this away from you. Imagine what you could do with $1.1 billion for the economy.

ObamaCare is far from perfect, but it is a step in the correct direction. I personally do not care for the mandate, but I will deal with the mandate because it is accompanied by all the other things in the bill, from the provision like the one above, to closing the doughnut hole and covering our elderly citizens’ preventative care at no cost.