Remember that $1.3 billion in health insurance rebates? They haven’t been in the news lately much because we’ve all been watching the Supreme Court for their ruling on the Affordable Care Act (“Obamacare”). Well, health insurers have been sitting on those rebates, and it turns out there’s probably a good reason.
Health insurers were being required to make those the payouts for not spending enough of their health insurance premium money on actual medical care under the terms Obamacare because under Obamacare, 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.
However, if the Supreme Court strikes down Obamacare next week as is totally possible, it’s unlikely that the health insurers will ever have to comply. If the law is ruled unconstitutional, health insurers would not be required to follow an unconstitutional law. It all means that the 12.8 million Americans who would otherwise be expecting rebates from their health insurers could very well be out of luck!
Do you think that you’ll be getting a health insurance rebate this year? Tell us about it in our discussion forum!
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