San Francisco – House Democratic Leader Nancy Pelosi released the following statement on the important consumer protections in the Affordable Care Act requiring insurers to spend a minimum of 80 percent of premiums on medical care and improving the quality of care, with insurers in the large group market held to an even higher standard. If they fail to meet these requirements, insurance companies must give a rebate back to consumers.
“For years before the Affordable Care Act, health insurance companies could raise your rates for no better reason than to pad their profits. They didn’t have to justify the increase, and they didn’t even have to spend it on medical care.
“Thankfully, the Affordable Care Act is finally holding insurance companies accountable, forcing insurers to pay millions of dollars back to overcharged American consumers – a direct result of the law’s requirement that insurance companies commit at least 80 percent of premium dollars to health care, instead of CEO pay and profits.
“The Affordable Care Act is working, and millions of Americans are seeing the proof in their pocketbooks. This year, insurers sent 8.5 million consumers an average rebate of approximately $100 per family. In California, more than 1.4 million people got a check back from their insurance company. With this law paying dividends for so many Americans, Republicans should stop trying to repeal these fundamental consumer protections, and work with Democrats to strengthen the Affordable Care Act for all Americans.”