Rep. Waxman Statement on HHS Report Finding Significant Affordable Care Act Savings for Consumers
Today Rep. Henry A. Waxman released the following statement on the new U.S. Department of Health and Humans Services report that shows the Affordable Care Act saved consumers $3.9 billion in premiums in 2012:
“Today we got some important news about the dramatic savings Americans are already seeing because of the Affordable Care Act. The law requires insurance companies to spend at least 80% of the premiums they collect on actual patient care, rather than on profits, administrative expenses, or executive salaries. The law also requires insurers to return any excess premiums they collect as rebates. The data released today shows that in 2012 consumers received over $500 million in rebates from their insurance companies and saved $3.4 billion in premiums compared to what insurers would have charged without reform. That savings comes on top of over $1 billion in rebates to consumers last year.
“In California alone, 1.4 million people will receive over $65 million in rebates from their insurance companies this summer, an average rebate of $71 per family. Last year, over 1.8 million Californians received nearly $74 million in rebates. Before reform, it was an uncommon event to get a rebate check from an insurance company or to see them lower premiums by billions of dollars. But thanks to the Affordable Care Act, consumers finally have the upper hand and insurance companies have to provide real value. These savings are yet another sign that the Affordable Care Act is already providing real benefits and that many more good things are to come.”
The report is available online here.