The Washington Post
Millions of consumers and businesses will receive $1.1 billion in rebates this summer from health insurance plans that failed to meet a requirement of the new health-care law, according to the Health and Human Services Department.
That Affordable Care Act rule requires insurance companies to spend at least 80 percent of subscriber premiums on health-care claims and quality improvement initiatives. The other 20 percent is left for administrative costs and profits.
Health insurance plans that don’t hit that threshold will send a rebate to consumers to cover the difference.
There could, however, be one big hitch. If the Supreme Court overturns the health-care law — a decision that could come as early as Thursday morning — experts say those checks are unlikely to hit Americans’ mailboxes.
“If [the Supreme Court] says the law is unconstitutional, insurers couldn’t be forced to pay rebates based on unconstitutional laws,” said Tim Jost, a law professor at Washington and Lee University.
In a new report, the Obama administration found that 12.8 million Americans will receive rebates this year, with an average value of $151 per household.
Related articles
- Americans to get $1.3 billion in health care rebates (bottomline.msnbc.msn.com)
- Health insurance plans owe $1.1 billion in rebates – Washington Post (washingtonpost.com)
- Mourdock: Health Insurance Plans Shouldn’t Have To Cover Cancer (alan.com)
- BCBS sued for tricking customers to leave better health insurance plans (americablog.com)
- Insurance companies owe $1 billion in rebates, if ObamaCare not struck down (americablog.com)
It’s interesting how much unravelling will occur if the affordable care act is overturned. It’s going to be a mess no matter what the decision. Looking forward to receiving a rebate…or not. We’ll find out next week! – Jared