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December 16th, 2013
More Than 400,000 Arizonans Get Rebates From Insurance Companies Thanks to Affordable Care Act Rule Limiting Profit on Premiums

Tucson, Ariz. – Rep. Raúl M. Grijalva today highlighted the 424,000 Arizonans who received an average rebate of approximately $71 per familyfrom their insurance company this year thanks to the Affordable Care Act (ACA). The ACA says insurance companies must spend at least 80percent of what they make in premiums – or 85percent in the large group market– on medical care and quality improvement efforts rather than overhead, profits and executive pay.

Insurers who fail to meet that standard, known as the “medical loss ratio,” have to send consumers a rebate to make up the difference. Insurers sent 8.5 million consumers an average rebate of approximately $100 per family nationwide this year.

The health care law requires insurance companies to publicly post and justify any proposed rate increase of 10 percent or more. Across the country, insurers are withdrawing or decreasing proposed rate hikes, benefiting families and the economy.One high-profile instance over the summer led to Anthem Blue Cross of California dropping its request to participate in the Covered California state health care exchange because of state-level scrutiny of its rate increases.

“Whenever we try to make the market a little fairer for working people, we hear these doom-and-gloom predictions that putting money back in their hands is going to wreck the economy,” Grijalva said. “Ask any of the hundreds of thousands of Arizonans who got a check back from their insurance company this year, and I think they’ll tell you this rule is working.”

House Republicans have voted to repeal the ACA more than 40 times.

The full state-by-state rebate table is below.

CONSUMERS RECEIVING 2012 REBATES FROM THEIR INSURANCE COMPANIES IN 2013[1]

 

State

Number of Individuals

Average Premium Per Family

Alabama

1,500

  $248

Alaska

12,300

  $190

Arizona

424,000

  $71

Arkansas

121,200

  $49

California

1,433,800

  $71

Colorado

150,500

  $134

Connecticut

47,600

  $168

Delaware

4,000

  $495

District of Columbia

210,200

  $53

Florida

614,200

  $132

Georgia

247,900

  $82

Hawaii

39,600

  $59

Idaho

28,000

  $152

Illinois

178,600

  $52

Indiana

273,000

  $157

Iowa

1,800

  $111

Kansas

83,700

  $71

Kentucky

206,800

  $100

Louisiana

81,000

  $50

Maine

8,800

  $106

Maryland

150,000

  $143

Massachusetts

173,500

  $457

Michigan

222,000

  $138

Minnesota

9,200

  $303

Mississippi

60,000

  $140

Missouri

457,000

  $72

Montana

13,300

  $173

Nebraska

42,000

  $82

Nevada

88,500

  $75

New Hampshire

15,400

  $147

New Jersey

220,000

  $104

New Mexico

17,500

  $24

New York

633,800

  $92

North Carolina

192,600

  $87

North Dakota

570

  $64

Ohio

6,300

  $133

Oklahoma

273,700

  $92

Oregon

22,300

  $206

Pennsylvania

123,600

  $77

Rhode Island

1,300

  $43

South Carolina

119,400

  $70

South Dakota

800

  $70

Tennessee

131,800

  $69

Texas

726,200

  $95

Utah

139,700

  $85

Vermont

5,200

  $58

Virginia

236,000

  $88

Washington

3,000

  $512

West Virginia

11,800

  $132

Wisconsin

147,100

  $46

Wyoming

8,400

  $284

 

 

Source – http://www.cms.gov/CCIIO/Resources/Data-Resources/Downloads/2012-mlr-rebates-by-state-and-market.pdf

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