Last September, we also put in place new rules that ensure that every single rate increase of 10 percent or more is \u00a0reviewed on either the state or federal level.\u00a0 For the first time, we have been able to guarantee Americans that no matter what state they live in, insurers will no longer be able to raise their rates by double digits without justification.<\/p>\n
These rules make the insurance marketplace more transparent and more competitive. And today\u2019s report shows that these rules are beginning to work.\u00a0 Of the double digit rate hikes that have been reviewed, half of them have been reduced or withdrawn altogether.\u00a0 That\u2019s saved nearly 800,000 Americans an estimated $148 million.<\/p>\n
When you look at all reductions to proposed rate hikes, including those below 10 percent, consumers have saved an estimated $1 billion.<\/p>\n
And that only begins to capture the effect of the law\u2019s new protections.\u00a0 For example, these numbers don\u2019t count the countless additional rate hikes that insurance companies decided not to try, knowing they could no longer do so \u00a0without increased scrutiny.<\/p>\n
These rules work hand in hand with other provisions of the law that save money for consumers. Thanks to the law\u2019s 80\/20 rule, 13 million Americans will benefit from an additional $1.1 billion in rebates.\u00a0 That rule sets a maximum amount of Americans\u2019 premiums insurers may spend on overhead like marketing and bonuses and requires them to pay their customers the difference if they exceed that limit.<\/p>\n
Added together, these reforms have saved consumers an estimated $2.1 billion in the last year.<\/p>\n