Greater than 6.8 million People will get a refund from their well being insurer this summer season.
Whole worth of the rebates shall be $332 million, with a mean of $80 going to every household. They’re going to be issued by August 1.
Thank the Affordable Care Act for the windfall. Underneath one of many legislation’s provisions, insurers should problem refunds in the event that they spend greater than 20% of what prospects pay in premiums on administration and advertising and marketing bills, as an alternative of medical care.
Related: Thankful for Obamacare
Insurers had been first required to problem these refunds in 2012, shelling out a complete of $1 billion to shoppers. The overall greenback quantity of refunds has decreased annually since then, as insurers have adjusted to charging much less for premiums and working extra effectively. Insurers paid again $504 million to prospects in 2013.
The marketplace for particular person insurance coverage insurance policies has made the largest features in effectivity, spending 11.5% of premiums on overhead prices final 12 months, down from 15.3% in 2011.
People will both obtain a test within the mail, a direct reimbursement to a checking account, or as a reduction to future premiums.
CNNMoney (New York) First revealed July 24, 2014: 3:43 PM ET
