There’s a check in the mail for 6.8 million people

black check

NEW YORK (CNNMoney) — More than 6.8 million Americans will get a refund from their health insurer this summer.

Total value of the rebates will be $332 million, with an average of $80 going to each family. They’ll be issued by August 1.

Thank the Affordable Care Act for the windfall. Under one of the law’s provisions, insurers must issue refunds if they spend more than 20% of what customers pay in premiums on administration and marketing expenses, instead of medical care.

Insurers were first required to issue these refunds in 2012, shelling out a total of $1 billion to consumers. The total dollar amount of refunds has decreased each year since then, as insurers have adjusted to charging less for premiums and operating more efficiently. Insurers paid back $504 million to customers in 2013.

The market for individual insurance policies has made the biggest gains in efficiency, spending 11.5% of premiums on overhead costs last year, down from 15.3% in 2011.

Individuals will either receive a check in the mail, a direct reimbursement to a bank account, or as a discount to future premiums.

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6 comments

  • Victoria Roth

    Oh I hope I qualify! My Medical bills are insane! And I am not sure how someone with insurance getting a refund is taking food from your mouth… They didn’t say people on medicaid, they said people with insurance. I have been paying for insurance since I was 18… never knew that hurt anyone.

  • trina

    http://freebeacon.com/politics/virginians-may-see-rise-in-premiums-despite-warners-promises/

    Warner, who voted for the ACA—commonly known as Obamacare—in December 2009, previously said he supported reforms that would lower health premiums and not add to the federal debt.

    However, premiums could rise by as much as 16.6 percent for some Virginians next year, well above the rate of inflation. Anthem HealthKeepers Inc., a subsidiary of WellPoint and one of the state’s largest insurers, is proposing an average increase of 8.5 percent on individual plans.

    Virginia’s health insurers submitted their requests for 2015 premium increases on Wednesday at a meeting with the State Corporation Commission. The insurers cited older, sicker enrollees and regulations and benefits mandated by Obamacare as reasons for raising costs.

    Warner is running for reelection this fall against Republican Ed Gillespie. Gillespie blasted Warner’s claims about Obamacare in a statement issued in May.

  • Edward Pope (@RFRStormer)

    I plan to vote for Warner, as he is doing the right thing here and ACA is working. I have seen many people that had no insurance, now with insurance. While it is not perfect, it is FAR better than not having insurance in this day and age.

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