Study Confirms Sen. Franken’s Provision in Affordable Care Act will Save Consumers Money

[ProSense]

Study Confirms Sen. Franken’s Provision in Affordable Care Act will Save Consumers Money

Average Minnesotan Would Have Received Nearly $300 Back from Insurers had Senator’s Legislation Been in Place Since 2010

A study released today confirms that a provision authored by U.S. Sen. Al Franken and passed as part of the Affordable Care Act will save millions of consumers billions of dollars. Sen. Franken’s Medical Loss Ratio (MLR) provision requires health insurers to spend at least 80-85 percent of what they collect in premiums on actual health services for their customers, as opposed to administrative costs, profits, or CEO salaries.

The study, released by the non-partisan Commonwealth Fund, estimates that had Sen. Franken’s Medical Loss Ratio (MLR) law been in place since 2010 the average Minnesotan would get $266 back from their insurance company this year. Nationally, consumers would have received rebates of nearly $2 billion. The estimates offer a prediction of what consumers may expect to see this August when insurers are required to issue rebates if they have not met the new MLR thresholds. According to the study, insurers will either be motivated to reduce rates or expand medical coverage to avoid rebates.

“Over a million Minnesotans have already been helped by health care reform and the law hasn’t even been fully implemented yet,” said Sen. Franken. “While this new report confirms that my Medical Loss Ratio provision will save consumers money, the provision will also improve the quality of the health care that people receive. That’s what I call a win-win.”

Sen. Franken authored the MLR provision during the debate on health care reform. It was inspired by Minnesota's long-standing medical loss ratio law and its non-profit health insurers, which lead the nation in keeping administrative costs low.

You can read a copy of the Commonwealth Fund’s Estimating the Impact of the Medical Loss Ratio Rule: A State-by-State Analysis here.

http://www.franken.senate.gov/?p=press_release&id=2031

[eridani]

1. It has not done so in any of the states that have tried regulation by MLR n/t

[ProSense]

2. It

"It has not done so in any of the states that have tried regulation by MLR"

...works for Medicare and should be expanded to all programs.

http://www.democraticunderground.com/1002500237

[eridani]

3. So why have insurance premiums doubled since 2000?

Including in those states which attempted regulation by MLR.

Medicare is a government program with its own data--they don't have to beg insurance companies not to fuck with their books.

[ProSense]

4. Because

"So why have insurance premiums doubled since 2000?"

...the health care law passed in 2010 and the full effects of the entire law aren't going to be realized until 2014.

[eridani]

5. 15 state have supposed regulation by MLR

Since it failed in those states, how is it supposed to succeed nationally?