With the rising cost of living, everyone appreciates any extra cash they can get their hands on. Millions of people in the United States are set to get refunds from their health insurance providers. The money from a rebate check can help your finances if you are expecting one.
Private health insurance providers are subject to regulations established by the Affordable Care Act.
Insurance companies that provide coverage to individuals and small businesses are obligated by the Medical Loss Ratio (MLR) provision to allocate at least 80% of premium revenue toward medical expenses and quality of care. Administrative costs, advertising costs, and profit can total up to 20%.
Health care claims and quality enhancements account for at least 85% of premium income for large group insurance plans, leaving up to 15% for administration, marketing, and profit.
If a private insurer falls short of these minimums, policyholders are entitled to a refund. Every year, by September 30th, they have to do this.
The MLR discounts are determined using a three-year moving average. The finances for 2019, 2020, and 2021 are used to determine this year’s discounts.
In the coming weeks, refund checks will be issued to over 8 million Americans.
To the tune of $1 billion, rebates are expected to be paid by private insurance companies.
An estimated 8.2 million Americans are eligible for rebates, and health insurers are expected to pay out a total of $1 billion to policyholders, according to an analysis by the Kaiser Family Foundation.
Need to know how much money might be coming your way? Rebates and their associated dollar amounts can change from one insurance provider or geographic region to another.
Those who have purchased individual health insurance policies can anticipate a rebate of around $141.
The average refund for those on a small group health plan is $155.
With a large group health insurance plan, you can expect a refund of around $78 per person.
It’s important to remember that the rebate doesn’t have to come in the form of a check from the insurer. A rebate check or credit toward future premium payments may be issued.
Have you received a rebate check yet?
If you are eligible for a rebate from your health insurance, you will receive notification of this from said company. If you have any inquiries, you can contact your insurance company directly. Recognize that the amounts to which you may be entitled as a rebate may be less than or more than those shown above.
Many American families struggle to afford health insurance premiums because of their high cost. Recouping some of your expenses could be a welcome relief from the stress caused by rising medical bills.
What plans do you have for the surplus cash? You could use the money to cover an unforeseen cost, pay down credit card balances, or increase your emergency fund. You could also buy yourself something you’ve been eyeing but have been putting off.
Warning: the longest introductory 0% APR on a cash-back card we’ve seen is almost eight years away, in 2024.
Using the wrong bank card can result in significant financial losses. This best pick comes recommended by our resident credit card guru because it has no annual fee, a 0% intro APR that lasts until almost 2024, and a ridiculous cash back rate of up to 5%.
Our expert even uses this card because it’s so great. The application process takes less than 2 minutes, so don’t waste any more time reading our full review for free right now.
View our no-cost evaluation here:
Due to our commitment to the Golden Rule, please note that the views expressed in our editorials are our own and have not been vetted by any of the sponsors whose products we feature. While the Ascent does its best to include as many deals as possible, there are some that it does not. The Ascent’s editorial content is created by a different analyst team than The Motley Fool’s editorial content is created by. There is a disclosure policy on The Motley Fool’s website.
The top 5 Fall getaways in the Northeast
This story has been updated with new information. Fall brings a welcome respite from summer’s heat and humidity as well...
Giant Slide reopened in the US for the first time since going viral
Thousands of people showed up to the Giant Slide in Detroit on the first weekend it reopened since going viral.
This hiker falls to his death at the Grand Canyon
A hiker walking in Grand Canyon National Park fell approximately 200 feet to his death on Friday afternoon, according to...
Ford fixed a problem with the Mustang that caused many crashes
Ford Mustang prototype mystery of 'The Bulge' has finally been solved.
You can buy a 90s Porsche-inspired boat, if you really want to
Yes, this is a yacht made to kind of look like a 993-generation 911 cabriolet.