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A Step in the Right Direction


When small business owner John heard that Republican members of Congress had voted to repeal the Affordable Care Act last week for the 33rd time, he was outraged. Just days before, as the head of a small Los Angeles law firm, John had been astonished by the rebate he had received from his insurance company as a part of the new health care law.

While Republicans continue to focus on repealing President Obama’s landmark legislation, millions of Americans throughout the country are already benefitting from health reform.

John is one of nearly 12.8 million people who has or will receive a rebate check from their insurance company this Summer as a result of the Affordable Care Act.

“I am a self-employed attorney with two employees on our group insurance, and for years our rate had been going up,” John says. “One week after the Supreme Court ruled to uphold the Affordable Care Act, I received a check in the mail. All I could say was ‘wow’.”

John received a $737 rebate as a result of a provision in the law known as the Medical Loss Ratio, requiring insurance companies to spend at least 80% of premiums on health care. In the past, insurers would regularly spend up to 40% of premiums on overhead and administrative costs. Today, if an insurer does not spend enough on health care, they are required to give rebates to people or small businesses enrolled in the plan.

“The letter from my insurance company explained that my provider failed to meet the 80% standard required under the new law.”

For John, this change couldn’t have come at a better time. He has six dependents on his insurance plan, including his family and the families of his employees.

“Each year our insurance company has increased our premium and, in order to get a lower rate, every person on our plan was forced to take a higher deductible,” John says. “Just imagine the people who don’t make the income I have – this is even more important for them. Costs were getting out of hand and President Obama did something about it.”

Help guarantee that all Americans continue to experience the benefits of the Affordable Care Act.

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