Provisions of the Affordable Care Act require health insurers to send rebate checks if they did not spend 80 cents of every premium dollar on our medical claims. In the last couple of days, details of those rebates have emerged. Headlines suggest the amounts will be large.
Don’t hold your breath.
Several major insurers will not be rebating anything. Calculations from two others suggest the amounts may be less than 1% of premiums paid.
Consider a business that pays $6,500 of annualized premium per covered employee. Their rebate may be less than $65 per employee. Consider further if the employer pays 70% of the premiums; the employee share would only be $19.50.
Letters to employers and employees will be in the mail shortly. Insurers will be mailing checks to the employer who must then follow guidelines for distributing the funds to covered employees.