Under a provision from the federal health care overhaul, health insurers are expected to rebate over $1 billion to consumers and employers this year, according to the Wall Street Journal.
The amounts vary greatly and some states have zero individual rebates at all, according to the Kaiser Family Foundation. But the average person will get $127 on a yearly basis.
A provision in the federal overhaul forces health insurance companies to provide refunds if they don't spend enough of the money they take in on health care, according to the article. Of the $1.3 billion in rebates, about $426 million will be given to people who bought their own health plan, $541 million to big employers and $377 to small businesses, according to the Kaiser Family Foundation.
Insurers must report to the federal government exactly how much the rebates will be by June. The rebates are expected to be sent out by August. Insurers have to spend at least 80 percent of premiums from small businesses and individuals, and 85 percent of premiums from big companies, on health care claims and quality improvement efforts, according to the article. The other 15 and 20 percent of the money can go to administrative expenses and profits and other things.
EMAIL: [email protected]