HHS on Health Insurers' Costs: 'Expenses Like Profits and Red Tape'
3:12 PM, Jun 20, 2013 • By JERYL BIER
The Department of Health and Human Services (HHS) put out a press release today promoting the savings to consumers from Obamacare in 2012. The department claims that the average consumer receiving a refund will get about $100 as a result of rules on how insurers must spend premium dollars. The press release contains the following curious characterization of ineligible expenses health insurers might incur:
Of course, profits are not expenses, but the remaining amount after expenses have been deducted. "Red tape" is generally a euphemism for bureaucracy or government regulation.
The 2011 average cost of a family policy was about $15,000, so the $100 rebates amount to a savings of about two-thirds of one percent.
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