MLR - year 2

80/20 Rule Delivers More Value to Consumers in 2012 just came out with MLR rebate information for 2012... Rebates to be paid by insurers decreased from the corresponding amounts paid in 2011 as insurers better calibrated their premiums to reduce the 'excess.'

Per the report: "...  Consumers benefit from the 80/20 rule in two ways. First, they benefit upfront because insurance companies now keep premiums lower and operate more efficiently in order to meet the 80/20 rule. And second, if an insurance company doesn’t meet the 80/20 rule, then the consumer benefits by receiving a rebate for the amount that exceeds this threshold. In 2012, the 77.8 million consumers in the three markets covered by this 80/20 rule saved $3.4 billion upfront on their premiums because of the 80/20 rule and other Affordable Care Act programs.  Additionally, consumers will save $500 million in rebates, with 8.5 million enrollees due to receive an average rebate of  approximately $100 per family..."

In HHS: One ACA provision saved Americans $4B last year reports: "[CMS Deputy Administrator  Gary] Cohen said "As [insurers have] adjusted their prices to the new rule, as they've become more efficient and more cost effective, two things happen: the number of rebates goes down and the corresponding amount of premium that people have to pay for the value they are getting for insurance comes down as well." Cohen also noted that other provisions of the ACA have contributed to lower premium rates by increasing competition among carriers and encouraging insurers to operate more efficiently..."

Hooray, so premiums are decreasing as stated at Putting Americans in Control of Their Health Care - "According to the independent and non-partisan Congressional Budget Office, people who get coverage through their employer today will likely see lower premiums. Reform will lower premiums by reducing administrative costs, increasing competition between insurance companies and creating a larger pool of insured Americans."!  Well, perhaps or perhaps not:

Cost of the Future Newly Insured under the Affordable Care Act (ACA)
Schumer: Yeah, health insurance premiums are going up partially because of ObamaCare; Update: Er, that’s not what I meant…

Some previous blog entries referencing the MLR:
All you ever wanted to know about the MLR - Sep 23rd, 2012
Latest MLR update -  Dec 4th, 2011
The MLR saga continues - May 13th, 2011
Misc update (MLR) - Mar 26th, 2011
Misc update - V - Feb 13th, 2011
Misc updates - MLR - Oct 25th, 2010
MLR Redux - Aug 24th, 2010
MLR update - Jun 27th, 2010
Health care re-form VIII (More nonsense) - August 28th, 2009