Nearly 250,000 Kentuckians to Receive More Than $15 Million in Insurance Rebates
WASHINGTON – Today, Congressman John Yarmuth (KY-3) announced that by next week, nearly 250,000 Kentuckians will have received approximately $15.4 million in health insurance rebates because of a new provision in the Affordable Care Act. On average, the rebates will total $114 per person.
“This is one of the key ways the Affordable Care Act lowers health costs for consumers,” Yarmuth said. “The law helps consumers get more out of their premium dollar, and that means expanded and improved care delivered more efficiently.”
The Affordable Care Act requires insurance companies to spend at least 80 percent of consumers’ premium dollars on medical care and quality improvement. Insurers can spend the remaining 20 percent on administrative costs. Insurance companies that do not meet the 80/20 standard must provide their policyholders a rebate for the difference no later than Aug. 1, 2012.
Consumers will receive rebates in one of the following forms:
-A rebate check in the mail
-A lump-sum reimbursement to the account used to pay the premium if it was paid by credit or debit card
-A direct reduction in future premiums
-An employer provides one of the above rebate methods, or applies the rebate in a manner to benefit its employees
Nationwide, 12.8 million Americans will benefit from $1.1 billion in rebates under the 80/20 standard.
For more information on the 80/20 standard and insurance rebates, please visit HealthCare.gov.