Congressman Cuellar reports 700,000 Texans received rebate through the Affordable Care Act
WASHINGTON, D.C. — Congressman Henry Cuellar (DTX-28) announced that approximately 726,200 consumers in Texas received an average rebate of approximately $95 per family because of new rules under the Affordable Care Act in 2013. Under new regulations in the ACA, if insurance companies do not meet new standards established by the health care reform law, insurers must send consumers a rebate.
“If insurance companies do not spend at least 80% of premiums on medical care and efforts to improve the quality of care, they must send their costumers a rebate to meet this threshold,” said Congressman Cuellar. “Texas families deserve to have affordable, quality health care that is a reflection of their hard earned dollars. I am pleased to see that the Affordable Care Act has reinforced these benefits for consumers and Texas taxpayers.”
In 2012, nearly 80 million consumers saved $3.4 billion upfront on their premiums because of this rule and other Affordable Care Act programs. And because of this rule, insurers sent 8.5 million consumers an average rebate of approximately $100 per family this year. The health care law also 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, benefitting families as well the economy.