Health insurance consumers are expected to see big refunds this summer, as HHS announced health insurers will issue $1.1 billion in rebates to 12.8 million Americans due to the medical loss ratio provision of the Patient Protection and Affordable Care Act.
Each family covered by a policy is expected to receive an average of $151. Families will receive a rebate check in the mail, a lump sum reimbursement to an account or a reduction in future premiums.
The MLR requires insurers to spend at least 80 percent of health premiums for individual and small group markets, or 85 percent for large group markets, on medical care. The remaining 15 or 20 percent of costs can be used toward administrative costs and profit.
However, if the PPACA is struck down by the Supreme Court, then health insurers would not be legally obligated to provide the rebates. The Supreme Court's ruling is expected next week.
Each family covered by a policy is expected to receive an average of $151. Families will receive a rebate check in the mail, a lump sum reimbursement to an account or a reduction in future premiums.
The MLR requires insurers to spend at least 80 percent of health premiums for individual and small group markets, or 85 percent for large group markets, on medical care. The remaining 15 or 20 percent of costs can be used toward administrative costs and profit.
However, if the PPACA is struck down by the Supreme Court, then health insurers would not be legally obligated to provide the rebates. The Supreme Court's ruling is expected next week.
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