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8.2 million Americans owe discount checks from private health insurance companies.
Main points
- Private health insurers that do not meet cost norms must return excess profits to policyholders.
- More than 8 million Americans receive cashback checks ranging from $78 to $155.
As long as we all agree to pay the necessary expenses of daily living, it’s nice to receive no extra money. Millions of Americans are entitled to discounts because of their health Insurance Companies, i.e. will soon receive some extra money. If you’re set to receive a rebate check, it can boost yours. Bank account Balance.
The Affordable Care Act outlines rules that private health insurers must follow.
The Medical Loss Ratio (MLR) provision requires insurers covering individuals and small businesses to spend at least 80 percent of premium income on health care claims and quality improvements. Up to 20% can be spent on administration, marketing costs and profits.
For large group insurance plans, insurers must spend at least 85% of their premium income on health care claims and quality improvements, leaving up to 15% for administration, marketing costs and profits.
When private insurance companies fail to meet these limits, they must reimburse policyholders. They must do so by September 30 of each year.
MLR discounts are calculated on a three-year average basis. This year’s discounts are calculated based on the 2019, 2020 and 2021 financials.
More than 8 million Americans are expected to receive discount checks in the coming weeks.
Private insurers are expected to pay $1 billion in premiums
Based on the analysis Kaiser Family Foundationabout 8.2 million Americans will have reduced rates and health insurers are expected to pay a total of $1 billion to policyholders.
Wondering how much money could be coming your way? Not all checksums are the same, and discounts may vary by plan type, insurer, and location.
Here is a list of discount estimates:
- For private health care plans, policyholders can expect a refund of approximately $141.
- As part of a small group health care plan, each individual can expect a refund of approximately $155.
- For those who are part of a large group health care plan, each individual can expect to be reimbursed approximately $78.
It is important to note that insurers do not have to provide the discount in the form of a cheque. You can send a rebate check or offer premium credit.
Got a rebate check coming?
Your health insurance company will notify you if you owe a deductible. You can contact your insurer directly if you have any questions. Keep in mind that the actual discount amount can vary — so you may owe less or more than the amounts listed above.
Health care costs in the United States are incredibly expensive, and many households struggle to afford this important expense. A little cash back can help ease some of the frustration you may feel about high health care costs.
How to use the extra money? Some options include using the money to pay an unexpected bill or expense Credit card debtOr adding extra funds to your emergency fund. Another option is to treat yourself to something you’ve been meaning to buy.
If you’re looking to improve your financial situation, you’re not alone. See ours Personal finance Resources for tips.
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