Insurance Rebates Coming Soon, Thanks To ObamaCare

Melissa Stusinski

Insurance rebates are now in the mail, after the federal government announced that 12.8 million Americans should receive rebates on their health insurance premiums, with the average household rebate check at $151.

The Columbia Tribune reports that the checks are either in the mail or in the hands of those who paid the premiums. In most cases, these people are the employees of companies who have health insurance through a commercial plan.

The the state of Missouri, $65 million in rebates will be received by August 1st, and will be shared among 588,000 private health insurance customers. The Great Falls Tribune notes that 25,353 Montana residents will benefit from an average rebate check of $194 from their health insurance companies.

These rebates are being sent out as a provision in the federal Affordable Care Act (also known as ObamaCare) called the “80/20” rule, which requires health insurance companies in both individual and small-group markets to spend at least 80% of consumers premium payments on medical care or health care plan improvements. Under the provision, large-group market providers are required to spend at least 85% on improvements.

According to The Columbia Tribune, however, most employees who do have health insurance will not see an insurance rebate, because companies who are self-insured (meaning they offer their own plans that are administered by an insurance company) do not qualify for the rebate provision.

Employees that are covered under a commercial plan may not see a cut of the refund either, because the insurance rebates are being sent directly to employers, who can decide whether to give a percentage to the employee or apply it toward the next year’s premiums.