Thursday, December 06, 2012

Obamacare saves American consumers over 1.5 billion.

Courtesy of the LA Times:  

Consumers saved nearly $1.5 billion in 2011 as a result of rules in President Obama's healthcare law that limit what insurance companies can spend on expenses unrelated to medical care, including profit, a new analysis shows. 

Much of those savings — an estimated $1.1 billion — came in rebates to consumers required because insurers had exceeded the required limits. 

The study by the New York-based Commonwealth Fund also suggests that the Affordable Care Act forced insurers to become more efficient by limiting their administrative expenses, a key goal of the 2010 law. 

In some cases, insurers passed savings on to consumers in the form of lower premiums and higher spending on medical care, the researchers found. This was primarily true in the individual market, where consumers buy health insurance on their own. 

The rules "appear to be producing important consumer benefits," concluded the report's authors, Michael McCue, a professor of health administration at Virginia Commonwealth University, and Mark Hall, a healthcare law professor at Wake Forest University. 

Administrative costs in the individual market dropped in 39 states, with major improvements in Delaware, Ohio, Louisiana, South Carolina and New York.

I guess those "death panels" that Sarah Palin was warning us about were ones that kill off wasteful spending and unnecessary administrative costs.

My ultimate hope is that soon Obama will set up those government sponsored national health insurance plans and drive these greedy pricks out of business for all time. In my opinion that was the goal all along, which is yet another reason that the politicians who receive massive campaign donations from health insurance companies fought so hard against the Affordable Care Act, and then later against Obama's reelection.


  1. Sharon8:50 AM

    It is about time this little known fact becomes front and center in the media. There are so many good things about the ACA, the country is finally coming around. I am so glad the "low wage" workers are starting to get media time too. The corps report quarter after quarter of higher profits while food stamps keep going up...duh. Walmart and the fast food chains keep millions of people in poverty while they keep raking it in. I have said it before, the sleeping giant (us) have been awaken and Obama is our hero. 2014 we will kick more of the greedy bastards out of congress and get Pelosi back who will actually get work done.

  2. physicsmom12:40 PM

    In addition to the refunds you write about, the ACA has already helped mitigate the growth of health care premiums. The media continues to report that health care cost went up since the ACA was passed. What they don't report (very much) is that the rate of increase has slowed considerably. Once the exchanges are set up and in use, the costs should continue to decline. The White House needs to have an all-out information campaign to highlight the benefits of the ACA, beyond twentysomethings being able to stay on their parents insurance.

  3. Anonymous2:03 PM

    Well, this week the Republican majority in Michigan's legislature (both houses) is launching its war on women. It will be interesting to see how it develops. Republicans are simply too insane to contemplate but Planned Parenthood is asking people to contact their legislators. Won't do any good here; they're teabaggers one and all.


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