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Applying health care reform rules to for-profit colleges


The College Student Rebate Act, introduced last week by Reps. George Miller (D-Calif.) and John Tierney (D-Mass.), would require colleges that spend less than 80 percent of their revenue on educational expenses to provide students, taxpayers or both with financial rebates, the Huffington Post reports. Miller and Tierney are taking an idea from the 2010 health care reform law and applying it to for-profit colleges with their bill. A provision in the Affordable Care Act, which Tierney helped craft, stipulates that 80 percent of health insurance premiums must go towards actual medical care and not to things like bonuses or executive pay. This is often cited simply as the “80/20” rule. The rebates would be issued to students and the federal government, based on the extent to which the institution’s spending on lobbying and advertising exceeds the 20 percent cap…

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