Health insurance companies are about to give out $1 billion in rebates to approximately 12.8 million Americans, according to CNNMoney.4 comments on this story
The average family will get a rebate of $151 as a result of a provision from the 2010 health care reform law that punishes insurers who spend too much on policy holders' premiums for boosting company profits instead of paying for medical care, according to the article.
"The rule helps ensure consumers get fair value for their health care dollar," Health and Human Services Secretary Kathleen Sebelius, said in a statement.
Starting in 2011, the provision required insurance companies to spend 80 to 85 percent of the premiums they collect on medical care, not on their own profits and overhead costs, according to CNNMoney. Insurance companies that didn't meet the federal standard are required to give customers a rebate of the difference by Aug. 1.