Insurers Will Issue $1.3B In Rebates Under ACA, Study Says

Law360, New York (April 26, 2012, 2:14 PM EDT) -- Health insurance companies that spent excessively on overhead or reaped greater profits than permitted by the Patient Protection and Affordable Care Act will return $1.3 billion to employers and consumers this year, according to an independent study released Thursday.

The report by the nonpartisan Kaiser Family Foundation looks at a provision of President Barack Obama’s signature domestic initiative that caps the amount insurers can shell out for executive salaries, marketing and other items not directly related to medical services.

Under the so-called medical loss ratio, insurers...
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