Obamacare Rebates Not a Good Sign, Experts Say

Thursday, 20 Sep 2012 12:04 PM

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Millions of Americans may be getting rebates from their insurance companies but that’s not necessarily an encouraging sign, according to National Public Radio.

Nearly 13 million Americans are receiving rebates from their health insurance companies under an Obamacare provision that is “supposed to force insurance companies to run better,” according to NPR.

But the rule could make health insurance more expensive.

"A lot of insurance companies run fairly high overhead rates," Kathleen Sebelius, the secretary of Health and Human Services, told NPR. "And those overhead rates, which go to everything from CEO salaries, to marketing, to agent and broker fees . . . don't really add to anybody's health benefit."

The provision says that if more than 20 percent of the premiums insurance companies collect goes to overhead and profit, they have to give out refunds.

Jonathan Gruber, an economist at MIT, who helped craft Obamacare, told NPR that the rule has the potential to drive up the cost of healthcare.
Since 80 percent of premiums have to be spent on healthcare, insurance companies have less incentive to keep health care costs down, according to NPR.

"I worry there that there's an incentive in that direction," Gruber told NPR. "I absolutely do."


© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Sen. Mark Udall: 'I Absolutely Stand By' Call for CIA's Brennan to Resign

Monday, 01 Sep 2014 21:58 PM

Central Intelligence Agency Director John Brennan may have avoided losing his job over charges that the CIA spied on Sen . . .

US Forces Carry Out Operation Against Al-Shabaab in Somalia

Monday, 01 Sep 2014 20:44 PM

U.S. military forces carried out an operation on Monday against al Shabaab militants in Somalia, a U.S. Department of De . . .

'Time' Mourns Dwindling Numbers of 'Social Justice' Nuns

Monday, 01 Sep 2014 20:39 PM

A Time magazine article bemoans the stark decline in the number of "social activist" women religious in the U.S. today,  . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved