The past couple weeks, individuals and small businesses have been getting a welcome surprise, namely rebate checks from insurance companies who violated the “80/20″ rule from the Affordable Care Act.
In a little-noticed provision, the ACA requires insurance companies to prove that no more than 20% of customers’ premiums goes to administration overhead (as opposed to actual care). If the company can’t show that, then they have to provide reimbursement. My small business just received back about $10,000 in premiums that we paid last year on behalf of our employees.
While everyone has an opinion on the “individual mandate” to buy insurance – very few have remarked upon the mandate on insurance companies to restrict costs.
Why isn’t the President talking about this?