The figures are in and they’re impressive. Health insurers will be sending out a total of $74 million to Californians in health insurance rebates this year, and those refunds should be issued this week. According to the California Department of Insurance, the average rebate will be $65 per family.
Health insurers are being required to make those the payouts for not spending enough of their health insurance premium money on actual medical care under the terms of the Affordable Care Act because under the Act, health insurers must spend 80 to 85 cents of every health insurance premium dollar on medical care. If health insurers don’t, they have to give the money back in the form of rebates, either by issuing rebate checks of crediting member accounts. According to the Kaiser Family Foundation, the rebates include $541 million in the large employer market, $377 million in the small business market, and $426 million for those buying insurance on their own.
“The Affordable Care Act requires that more of our health insurance premium dollars be spent providing healthcare, rather than on administrative costs and profits,” said California Insurance Commissioner Dave Jones.
Are you expecting a health insurance rebate this year? Tell us about it in our discussion forum!
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- Will There Really Be $1.3 Billion in Health Insurance Rebates? Maybe Not…
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