WASHINGTON, Sept. 12 (UPI) -- The Affordable Care Act has saved more than $1 billion by requiring health insurance companies to justify large premium increases, U.S. officials said Thursday.
The rate review provisions of the act, popularly known as Obamacare, took effect Sept. 1, 2011. Those require reviews of every increase in premiums of 10 percent or more with states getting grants to help them implement the system.
The Department of Health and Human Services in a statement Thursday said holders of individual and small group policies have saved $1.2 billion because of the reviews.
"Thanks to the health care law, we are seeing that holding insurance companies accountable is leading to increased competition and saving billions of dollars for consumers across the country," Secretary Kathleen Sebelius said. "This type of competition and transparency will continue in the Health Insurance Marketplace, or Exchanges, where Americans will be able to shop for and compare plans side-by-side to find the one that fits their needs and budget."