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Personal and business customers of health insurance plans across the United States are owed quite a large sum of money—$1.1 billion, in fact. The rebate comes from a provision of the Affordable Care Act.
The Washington Post reports that because of the 2010 law, commonly known as Obamacare, insurance companies that spend less than 80 percent of their subscriber premiums on health-provider claims or service improvements are required to refund the difference:
In a new report, the Obama administration found that 12.8 million Americans will receive rebates this year, with an average value of $151 per household.
“The big improvement here is a better value for the premium dollar,” said Mike Hash, interim director of the Center for Consumer Information and Insurance Oversight. “What this standard encourages issuers to do is be prudent in their administrative expenditures, so the bulk of the premium dollar is going to pay for benefits.”
But consumers might want to hold off for now on what they might do with those checks. The Supreme Court is set to rule this month on the fate of the health care law, and if the entire act is tossed out, the rebates are likely to be cancelled.
Legal observers had expected a decision today on the health care case; instead, the justices ruled on a broadcast indecency case. The court will announce its next round of decisions on Monday.