The Department of Health and Social Services issued some encouraging news today for consumers about savings associated with health insurance. “Today, the Department of Health and Human Services (HHS) announces that nationwide, 77.8 million consumers saved $3.4 billion up front on their premiums as insurance companies operated more efficiently. Additionally, consumers nationwide will save $500 million in rebates, with 8.5 million enrollees due to receive an average rebate of around $100 per family.”
This is related to the 80/20 rule where insurance companies have to spend 80% of every dollar collected in premiums on direct patient care. If they do not, the difference is given back to the consumers as either rebates or compensation in better future benefits.