A non-profit group estimates if the Affordable Care Act provisions had been effect in 2010, U.S consumers would have received $2 billion in rebates.
Sara Collins, vice president of the Commonwealth Fund, a foundation supporting independent research on health policy, said the medical-loss ratio rules that went into effect in 2011 were designed to control private insurance administrative costs for consumers and government.
The rules require a minimum percentage of premium dollars to be spent on medical care and healthcare quality improvement — not administrative costs and corporate profits. Insurers must meet a minimum medical loss ratio of 80 percent in the individual and small-group markets, and 85 percent in the large group market — and issue rebates if they do not, Collins said.
The report by the Commonwaelth Fund: The Commonwealth Fund estimates returns to customers from insurance companies who did not comply last year for all fifty states.