There are times that the title of legislation does not adequately describe the nature and purpose of a law that leads to confusion and uncertainty in the population. In March 2010, the Patient Protection and Affordable Care Act was signed into law and over this past weekend, one specific provision of the law went into effect and it epitomizes the meaning of the law irrespective of all the other benefits to Americans. All at once, the law’s detractors on the professional left and wary Americans will see immediate benefits that will change the nature of health care insurance for the better and it has the potential to push health care in America toward a single-payer, universal care system.
The provision that seemed to be buried in the extensive law, the medical loss ratio, requires health insurance companies to spend 80-85% of consumer’s premiums on real medical care and not overhead, profits, or marketing expenses. If insurers fail to meet the requirement, they are bound by the law to send rebate checks to consumers “representing the amount in which they underspend on actual medical care.” Now, before any conservative or naysayer claims the provision is not workable or true, California school teachers began receiving their rebate checks on Friday for premiums they paid that were not used for medical care. According to a report in Forbes, “This is the true ‘bomb’ contained in Obamacare and the one item that will have more impact on the future of how medical care is paid for in this country than anything we’ve seen in quite some time.”