Where’s My Health Insurance Premium Rebate?
In August some people received a rebate check from their health insurance carrier, but many more did not. To some this has led to considerable consternation to many – especially in light of the Department of Health and Human Services’ (HHS’s) public claim that Americans receiving the rebate will benefit from an average rebate of $151 per household. The explanation as to why some but not others will receive a rebate is found in the details of the Affordable Care Act. Under the federal Affordable Care Act health insurers issuing individual and small group plans must spend 80% of the premiums paid by consumers on health care and activities to improve health care quality. The percentage of premium income an insurer spends on care and improving quality is called “Medical Loss Ratio” or MLR. The health insurers MLR is determined separately for each state’s individual, small group and large group markets. The only health insurers that are required to ...