In a new report, the Obama administration found that 12.8 million Americans will receive rebates this year, with an average value of $151 per household.
“The big improvement here is a better value for the premium dollar,” said Mike Hash, interim director of the Center for Consumer Information and Insurance Oversight. “What this standard encourages issuers to do is be prudent in their administrative expenditures, so the bulk of the premium dollar is going to pay for benefits.”
Hash would not speak to what might happen to the rebate checks should the Supreme Court strike down the law. “We are quite confident the court will uphold the Affordable Care Act in its entirety,” he said.
This requirement — known in the law as the “medical loss ratio standard” — came into effect on Jan. 1, 2011. Rebates will go to customers in plans that exceeded the limit last year.
The rebates will go to those in both individual and group plans, with the amount varying greatly by state.
SOURCE: Health insurance plans owe $1.1 billion in rebates – The Washington Post.