A new report has indicated that the Affordable Care Act refunds could hit $1.4 billion this year.
The provision of the Affordable Care Act (Obamacare) which provides millions of Americans with health insurance rebates is expected to reach a record high level this year.
Health insurance customers may be receiving more in refunds this year than ever before.
In 2012, a component of the Affordable Care Act went into effect which required insurers to pay their customers a medical loss ratio (MLR) payment every fall under certain circumstances. If those health insurance companies do not spend 80 to 85 percent of customer premiums on health services, the rebates are required to be issued.
That provision was initially sponsored by former Minnesota Senator Al Franken. It was implemented to make certain that the rates insurers charge are indeed being used to pay for health services. When they’re not, they’re returned to the people who paid them.
This year, those health insurance rebates are expected to be higher than in any previous year.
Last year in Texas, for example, customers received an average rebate of $142 after insurers paid back a total of more than $7.8 million to 54,851 customers. This year, several insurers didn’t meet their MLR goals and will be issuing their checks to customers this month.
Though the actual numbers for 2019 won’t be released until later this quarter, a Kaiser Family Foundation analysis predicts that this year’s refunds will be in the range of $1.4 billion. Of that, about $800 million will be paid out to individual market plan holders…..Read more>>