Insurance rebates totalling $1.3 billion could be on the way this summer, study says

[alp227]

Source: Washington Post

This summer millions of Americans could find a check in the mail from an unexpected source: their health-insurance company.

Consumers and businesses will receive about $1.3 billion by this August from insurance plans that failed to meet a new standard in the 2010 health-care law, according to estimates released Thursday by the independent Kaiser Family Foundation. (That’s assuming the law, or at least the portion of it containing the rule, is upheld by the Supreme Court, which is expected to issue its decision in late June.)

The rule requires most insurers to spend at least 80 percent of the premiums they collect from customers on health-care claims or quality improvement efforts — leaving no more than 20 percent for administrative expenses, such as salaries and marketing, and profits for investors.

This “medical loss ratio” requirement took effect on Jan. 1, 2011, so under current law, any plans that exceeded their limits last year must refund customers the difference by Aug. 1.

Read more: http://www.washingtonpost.com/national/health-science/insurance-rebates-totalling-13-billion-could-be-on-the-way-this-summer-study-says/2012/04/26/gIQAcpI0jT_story.html

[Bozita]

1. GOPers ain't gonna like this, especially in an election year!

[freshwest]

2. This good news won't be covered by MSM. It shows why the GOP hates the law.

[canoeist52]

3. Sadly, not much help for most workers though...I guess it's a start.

"Not all rebates will be issued in the form of a check. In some cases, insurers could give consumers and employers discounts on future premiums. Rebates on employer-purchased plans will generally be provided to the employer, which may opt to pass them on to workers. "

[grahamhgreen]

4. I see accountants being hired

[CrawlingChaos]

5. That should be right around the time my 9% rate hike kicks in

Hard to get too excited.

[drdtroit]

6. Exactly, they'll never cough up a dime, simply pass it off in increases, CRIMINALS!

[woo me with science]

8. +1

[sarcasmo]

7. File this under, believe it when I see it