Checks come as surprise under ‘Obamacare’

An interesting blog on health reform. My feeling is that many people don’t completely understand all the benefits associated with the law. Here’s a little tidbit of information many may be surprised to know.

The Chart

Your check really might be in the mail.

By August 1, health insurance companies have to refund $1.1 billion in premiums to about 12.8 million customers, thanks to the Affordable Care Act.

The “80/20 rule” in the ACA mandates that health insurers spend at least 80% of their customers’ premiums on health services, leaving no more than 20% for administrative costs and advertising. That means if an insurance company spends 78% of the money it collects on health benefits for customers, it has to send rebate checks for the additional 2%.

“The 80/20 rule in the Affordable Care Act is intended to ensure that consumers get value for their health care dollars,” a letter accompanying the refund checks says.

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