Texans to Earn $167 Million in Refunds from Affordable Care Act
(TEXAS) –A key provision of the Affordable Care Act will return $167 million in refunds to over 1.5 million Texas families, resulting in refund checks of approximately $187 per family. The refunds are a result of the “Medical Loss Ratio” provision in the Affordable Care Act, which requires that insurance companies spend 80% of consumers’ premium dollars on health care, and only 20% on administrative overhead and profits.
Insurance companies that did not follow this new “80-20” rule must rebate any excessive dollars to the consumers by August 1.
“I think it’s the first time an insurance company has given me back money!” said Matt Glazer, Executive Director of Progress Texas, who like millions of Texans will receive a refund check from insurance providers. “President Obama’s Affordable Care Act promotes better care, not bottom lines, for Texans. This common sense law is a tremendous benefit to millions of Texans.”
Last December, the Texas Department of Insurance (TDI) requested a waiver from the United States Health & Human Services (HHS) department to allow the state to delay the full implementation of the “Medical Loss Ratio” 80-20 rule. Progress Texas, joining with Texas Well & Healthy and a number of other health care nonprofits in Texas, petitioned HHS to ignore the state’s request.
In January of 2012, HHS denied TDI’s request, citing – among other reasons – the 2,775 Texans who took action with Progress Texas and other groups calling on the waiver request to be denied so that insurance companies would have to spend more money on better care, not bottom lines, in Texas.
The letter from Blue Cross Blue Shield Texas and photo of Matt Glazer with check are available upon request.
To learn more about the previous work by Progress Texas on this issue, please visit our website.