
Reports Say ACA Saves Consumers Billions, but Cuts Insurers' Profits
The Patient Protection and Affordable Care Act saved consumers $1.7 billion on health insurance premiums last year, an HHS report found. Meanwhile, a separate study found that ACA provisions squeezed insurers' profits.
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The HHS report cites two provisions directly affecting health plan premiums—a rate review for premium increases that top 10% and the medical-loss ratio standard that caps how much of premium revenue insurers can use for administration, marketing and profits.
In its report Thursday,
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Source: Modern Healthcare
The report said the average rate request in the individual insurance market dropped from 8.1% to 7.1%—a 12% decrease—and in the small group market, from 5.8% to 4.7%—a 19% drop. The data excluded the large group market.
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