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Health Insurance Rebates On The Way, Your Check Is In The Mail!

It’s not often that an insurance company gives you money back but this time it’s true.  Apparently there was a bit of a snafu.  But thanks to a provision in the health care reform law, millions of people will be receiving rebates from their insurance companies this summer.  By Aug. 1, insurers that failed to meet one of the guidelines in the Affordable Care Act will have to issue rebates averaging $127 to certain policyholders.

Large employer-sponsored plans were required to spend 85% of a policyholders’ premium toward patient care, such as doctor’s visits and hospital stays, and quality improvement activities, including discounted gym memberships or wellness brochures, instead of things like administrative and marketing costs.  Insurance companies that cover individuals and small businesses were required to spend at least 80%. If an insurer failed to meet that threshold, they must issue a refund.  Can you say HIGHER PREMIUMS NEXT YEAR.  That’s how they will get that money back because that’s what insurance companies do.

Here’s how premiums will be distributed…


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