The Wall Street Journal reported today, April 27, the estimated amounts of overall 2011 premium rebates required by Health Care Reform. Premium rebates are payable annually by the insurance companies to their policyholders, beginning this year in August. The reported rebate estimates come from Kaiser Family Foundation. Goldman Sachs has separately estimated similar rebate amounts for 2011.
HHS Secretary The Fair Kathleen opined that the rebate estimates show the health care law “is already strengthening the health care system.” We'll see about that, Kathleen.
Returning to reality, the estimated average rebate payable to subscribers in small-group plans is $6.30 per month, and for subscribers in large-group plans is $6.00 per month. These estimated rebates thus equal about one half of one percent of the monthly average 2011 family-coverage group insurance premium or about 1.4% of the monthly average 2011single-coverage group insurance premium. Overall, way less than 2%.
Keep in mind group policies cover the vast majority of privately-insured people.
For the 7% or so of Americans who are covered by individual policies, Kaiser estimates average rebates of about $10.60 per month per policy, less than 6% of the monthly average 2011 individual policy premium.
The thanks of a grateful nation are owed to The Fair Kathleen and The Cool Barack.