Obamacare getting many people health care insurance rebates
Many people have not been thrilled about the Affordable Care Act, also dubbed “Obamacare.” However, a lot of people will be happy with the health care insurance refunds that are likely to be sent out this summer. Source of article: Obamacare results in health insurance rebates
A medical loss
The Affordable Care Act, or “Obamacare” in the media, was lauded by some and decried by others. Opinion is still mixed, and the law's fate is currently being decided by the Supreme Court. However, before the court renders its decision, a provision of the law might pay some dividends for a good number of individuals, according to the Huffington Post.
The Medical Loss Ratio may be the thing that people really like. Insurance corporations have to spend a certain amount on treatment of patients as a ratio of the cash received. This can contain preventative services such as gym memberships or treatment of insured patients. The law needs this amount to be spent on every dollar of revenue.
That part of the law would require that 80 to 85 percent of all revenue go to patient things. A rebate must be ordered if the company spends less than 80 percent.
Look at the mailbox
According to NPR, the Department of Health and Human Services estimated that insurers nationwide would have to issue rebates of $1.4 billion. A recent report by the Kaiser Family Foundation, a division of the Kaiser conglomerate separate from the company's health insurance division Kaiser Permanente, estimates that insurers will issue $1.3 billion in refunds. A Goldman Sachs estimate pegged it at $1.2 billion.
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According to CNN, $426 million is going to be sent to 3.4 million consumers who acquired private insurance. There are approximately 215 individual plans from several insurers that will result in individuals getting a rebate. The rebate is also going to vary by state. People in Maine and Brand new Mexico will get the least of the rebates, as the Kaiser report estimates they will get an average rebate of $1. Alaskans and residents of Maryland are estimated to get $300. The average refund will be $127.
Not giving away cash
The insurance rebate is not actually going to be in the form of a check. Insurers may choose to credit the rebate against future premiums. The premium is also going to vary by insurer; it depends on how far under the medical loss ratio the individual insurer went.
When going through an employer or a government, the rebate will not go to the individual. Instead, it will go to the policy holder, so a lot of people will not see the cash if they have a group plan.