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Tierney Provision in Health Care Law Holding Insurance Companies Accountable

According to early estimates from the Kaiser Family Foundation, insurance companies will reportedly provide 15.8 million Americans with as much as $1.3 billion in rebates in 2012!

In 2010, Congress passed the Affordable Care Act, which included many critical provisions for our families, students and seniors such as giving students the opportunity to stay on their parents insurance until age 26, ensuring men and women are not prevented from acquiring health insurance due to a pre-existing condition, and requiring more transparency and responsible spending from insurance companies.

One of the key aspects of the law that I fought to include is called the Medical Loss Ratio (MLR) or the “80/20” rule, which requires insurance companies to spend generally at least 80 cents of every dollar you pay in premiums on your health care versus CEO pay and other administrative costs. If the insurance company fails to meet this standard, in any year, they have to pay you a rebate. 

Late last week, the Administration announced the final rule directing insurance companies that did not meet the MLR to inform consumers and provide you with a rebate no later than Aug. 1 of this year.  According to early estimates from the Kaiser Family Foundation, insurance companies will reportedly provide 15.8 million Americans with as much as $1.3 billion in rebates in 2012!

This kind of transparency and accountability is critical to our efforts to protect consumers and keep health care costs down. There is no reason for your health care premiums to be spent on sky-high executive salaries or marketing materials. This rule empowers consumers with the knowledge of which companies are playing by the rules, and holds financially accountable those which aren’t. You’ll be able to see your plan’s medical loss ratio on HealthCare.gov starting this summer. 

More than one billion dollars in rebates and the transparency to know how insurance companies are spending your hard-earned money – it’s a step in the right direction.

This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

MikeA August 24, 2012 at 05:38 PM
If we had the civil Patch message boards and diversity training during the American Revolution, we'd might get along better but we might still be part of the British Empire. They say you shouldn't discuss politics and religion in polite company. I don't like hateful, rude, unthoughtful, and dumb posts like everyone else (except for my own). But what I think Ellen G is essentially proposing is to eliminate political and religious topics from the Patch - so we'd all get along. I'm willing to live with some hate and anger in order to express my opinion. I'm doing my best to promote my opinion is a civil fashion with a dash of sarcasm. An to tell others where I disagree without personally attacking. BTW, I think Mitt Romney would do a better job of bringing the country together than the current President - since I think he's a little closer to the center. And Mr. Tisei is much closer to the center than Congressman Tierney.
Steve August 24, 2012 at 06:10 PM
Way to go Ellen G. Can't even take the time to look up articels or proof your post at all. And yes, please take away my right to free speech because you haven't got the energy to fast forward through comments and articels (sic) you don't like. I beg to differ with you that it is not the politics of those elected that is ruining this country. It is EXACTLY that, and the people who choose to elect them without researching the consequenses. Do you think it was any different in Jefferson's time? Do some reading, see what history was like. If you don't like it, then you may find the way it happens in other countries more appealing (Venezuela, Cuba come to mind). If people are civil with me, I am civil with them. And your post indicates that you want to censor, not contribute. Have a wonderful day and please contribute to the discussion when you have something meaningful to say.
Steve August 24, 2012 at 06:17 PM
The act mandates MUCH more than what you are stating here. The act does nothing to ameliorate the costs incurred by the legal taxpayer...in fact it adds more cost (I have seen this first hand already), will lead to an elimination of choices that an employer is willing to offer (I have seen this first hand already), impedes the flow of the health care process and makes health care professionals consider getting out of the system. I have no doubt that future prospective employees will be presented with only one choice for health care....sorry, the company does not offer health care anymore - ask your government official. Do you like the RMV? You are going to LOVE health care in the future, unless we act now to elect knowledgable honest people....that is....not Tierney or Warren types.
Joe Veno August 25, 2012 at 12:07 AM
Jim, I agree but please note I am not theone who starts it.
pk August 26, 2012 at 07:05 PM
Mitt Romney on Fox News: Just two weeks after a Romney spokesperson faced a barrage of conservative criticism for highlighting the success of the governor’s Massachusetts health care law, Romney himself bragged that the measure has expanded access to women’s health care services, including contraception. During an interview with Fox News on Sunday, Romney said he was “very proud” of Romneycare — which includes an individual mandate — for providing coverage to all women and men: ROMNEY: With regards to women’s health care, look, I’m the guy that was about to get health care for all of the women and men in my state. They’re talking about it on the federal level, we actually did something. [...] CHRIS WALLACE (HOST): So you’re saying, look at Romneycare? ROMNEY: Well, absolutely. I am very proud of what we did, and the fact that we helped women and men and children in our state… And then with regard to contraceptives, of course Republicans, myself in particular, recognize that women have a right to use contraceptives. There is absolutely no validity whatsoever to the Obama effort to try and bring that up. http://thinkprogress.org/health/2012/08/26/745521/romney-touts-romneycare-im-the-guy-that-got-healthcare-for-all-the-women-and-men-in-my-state/

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