Consumers to Get $1 Billion in Health Insurance Rebates

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By PARIJA KAVILANZHealth rebates insurance

NEW YORK (CNNMoney) -- Health insurers will dole out a total of $1 billion in rebates to 12.8 million Americans this summer -- an average of $151 per family --as a result of the 2010 health care reform law, the government said Thursday.

The rebates announced by the Department of Health and Human Services come from a provision of the law that punishes insurers who spend too much of policyholders' premiums for boosting company profits instead of paying for their medical care.

The rule mandated that, beginning in 2011, insurance companies would have to spend 80% to 85% of the premiums they collect on medical care instead of toward their own profits and overhead costs.

Insurers that didn't increase that allotment to the new federal standard would have to give customers a rebate for the difference beginning in 2012.

HHS said insurance companies that failed to meet the required "medical loss ratio" must provide a rebate for the difference to their customers no later than Aug. 1.

"The rule helps ensure consumers get fair value for their health care dollar," HHS Secretary Kathleen Sebelius, said in a statement.

HHS said consumers owed a rebate could get it as a check in the mail, a lump-sum reimbursement to the same account that they used to pay the premium if by credit card or debit card, or as a reduction in their future premiums.

For affected policyholders who are insured through their employers, their companies could provide them with the check or reimbursement, or employers could apply the rebate in another manner that benefits their employees, the agency said.


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chris1011

Vulture capitalist Mitt Robme at Bain Capital when he outsourced jobs:
I will take the pension fund money that I raided from your father and run for president and you will still vote for me.

June 26 2012 at 2:57 PM Report abuse -1 rate up rate down Reply
fifthhigh

How many of you loud mouth crackers live in RED WELFARE STATES? GO on, raise your hands, I want to know.

June 25 2012 at 1:20 PM Report abuse -1 rate up rate down Reply
pyps

During Young King Bush's days, My premium from United went up over 100 % because I turned 60. Have your facts straight and think before you make a comment. Rates have been increasing rapidly over the past decade. You do not like my president, so you post lies. Typical of illeterates.

June 25 2012 at 12:04 PM Report abuse -2 rate up rate down Reply
Robert & Lisa

How much you want to bet they'll just raise rates even more to cover their loss. Just repeal the law. We were better off without the government interference.

June 25 2012 at 5:53 AM Report abuse +2 rate up rate down Reply
gainder2

LOL! Then the costs escalate starting (GULP), next year! Nothing more than a planned Obama campaign gimmick the timing of which was planned long ago.
If this doesn't give voters a smoke trail to seriously how cynical Obama is toward everything and everyone, except his re-election. Age old trick of buying votes. TASS would be proud of Obama's tactics.

June 23 2012 at 10:12 AM Report abuse -2 rate up rate down Reply
ha6ai

So Obamacare raises my premiums $3,000.00 a year and I get "back" $151.00?

Thanks a bunch Obama! Aburd!

And thanks HuffPuff for the lovely picture of Obama, NOT!

June 23 2012 at 5:47 AM Report abuse +1 rate up rate down Reply
lmw0208

big effing deal. already rec'd a letter from my insurance company that they are asking for more than a 16 percent increase next year!!! what a deal!! thanks, Obi-Won-term Kenobi

June 22 2012 at 12:19 PM Report abuse -2 rate up rate down Reply
1 reply to lmw0208's comment
gjordal

Yeah, health care never went up until Obama came along. Get real.

June 22 2012 at 2:29 PM Report abuse -3 rate up rate down Reply
1 reply to gjordal's comment
pyps

During Young King Bush's days, My premium from United went up over 100 % because I turned 60. Have your facts straight and think before you make a comment. Rates have been increasing rapidly over the past decade. You do not like my president, so you post lies. Typical of illeterates

June 25 2012 at 12:01 PM Report abuse rate up rate down
Hello Samantha

LMAO! State medicaid sucks especially in the state of AL but then again everything about this state sucks sorry I live here so that's my opinion!!!

June 22 2012 at 3:48 AM Report abuse +3 rate up rate down Reply
1 reply to Hello Samantha's comment
Robert & Lisa

Until Obama becomes a dictator, you can still move.

June 25 2012 at 5:57 AM Report abuse rate up rate down Reply
ha6ai

Obamacare drastically raises the cost of "medical care", explodes the cost of medical insurance, and then the libs take credit for a tiny amount of a rebate!

80% is in any event a far too low a payout. Thanks a bunch Obama! What a disaster! Hopefully this unconstitutional disaster will be overturned by the Supreme Court (which Obama has offensively attacked).

June 22 2012 at 3:24 AM Report abuse +3 rate up rate down Reply
1 reply to ha6ai's comment
chris1011

Not according to the OMB (office of management and budget).

June 22 2012 at 11:20 AM Report abuse +1 rate up rate down Reply
4 replies to chris1011's comment
MIKEY'S SCREEN

(Another Obamacare joke in the making prior to an election year vote)

June 22 2012 at 1:04 AM Report abuse -1 rate up rate down Reply