For Immediate Release: 6.1.2012
UnitedHealth’s $3.5 Million Refund to California Small Businesses Shows Importance of Upholding Healthcare Reform Law
With the Supreme Court set to announce the fate of the healthcare reform law this month, the news today that 4,400 California small firms with 36,000 employees will get $3.5 million back from one of the nation’s biggest insurers—all thanks to the law—is strong evidence that its provisions are working for small employers. These rebates emphasize how important it is that high court justices uphold the Affordable Care Act so small businesses across the country can continue reaping its benefits.
The largest health insurance company in the nation, UnitedHealth, is the first of all major insurers to announce the amount of money it must return to customers to comply with the Medical Loss Ratio provision of the Affordable Care Act. This provision requires 80 cents of every premium dollar to be spent on patient care and quality improvement. With its effects already reaching entrepreneurs throughout California and across the nation, a Supreme Court decision to overturn the law would be disastrous for small business.
This provision of the healthcare law is meant not only to put hard-earned money back in Americans' pockets, but to help make the coverage market more efficient by eliminating superfluous expenses. By holding insurance companies accountable for how they spend small business owners’ premium dollars, the Affordable Care Act is improving upon the healthcare system as we know it, for small businesses and consumers alike. We hope Supreme Court justices have thoroughly looked at what the law is already doing to boost small business and the economy, and that they uphold it.
Small Business Majority is a national small business advocacy organization, founded and run by small business owners, to support America’s 28 million small businesses. We conduct extensive opinion and economic research and work with our rapidly growing network of small business owners across the country to ensure their voices are an integral part of the public policy debate. Learn more about us on Wikipedia and follow us on Twitter and Facebook.