HHS: ObamaCare saved consumers billions

ObamaCare’s crackdown on the health insurance industry yielded consumers nearly $3 billion in savings over two years, federal health officials said Friday.

New estimates from the Department of Health and Human Services (HHS) point to the impact of the healthcare law’s medical loss ratio, or 80/20 rule, which limits the amount insurers can spend on administrative costs and profit.

{mosads}The figures also illustrate the power of rate review, the process by which state regulators veto health insurance premium increases that they consider excessive.

“Before the Affordable Care Act, consumers regularly faced annual significant premium increases,” said HHS Secretary Sylvia Burwell in a statement.

“In 2013 alone, we see that rate review programs saved consumers approximately $1 billion while providing them with the information they need to get the care they deserve.”

Burwell announced that 21 states will receive roughly $25 million in additional federal grants for their rate review programs.

Combined with rebates from the medical loss ratio, the process saved policyholders a total of $2.8 billion between 2012 and 2013, the announcement stated.

The Obama administration frequently touts metrics like these to promote the Affordable Care Act, which remains unpopular with the public.

Critics charge the law places too many restrictions on insurers, hurting business and potentially driving up costs.