8.2 million Americans are owed discounted checks by private health insurance companies.
- Private health insurers that fail to meet spending rules must pay excess profits to policyholders.
- More than 8 million Americans will receive refund checks, ranging from about $78 to $155.
As we all adjust to paying higher costs for the essentials of everyday life, getting any extra cash is welcome. Millions of Americans are owed deductibles through their health insurance companies, which means they will soon be getting extra money. If you are set to receive a rebate check, it can increase your bank account balance.
The Affordable Care Act outlines the rules that private health insurers must follow.
The Medical Loss Ratio (MLR) provision requires insurers covering individuals and small businesses to spend at least 80% of their premium income on health care claims and quality improvements. Up to 20% can be spent on administration, marketing expenses and profit.
For large group insurance plans, insurers must spend at least 85% of their premium income on health care claims and quality improvements, leaving up to 15% for administration, marketing expenses and profit.
When private insurance companies do not meet these limits, they must issue refunds to policyholders. They must do so by September 30 each year.
MLR discounts are calculated based on a rolling three-year average. This year’s discounts are calculated based on the 2019, 2020 and 2021 financials.
Over 8 million Americans are due to be discounted in the coming weeks.
Private insurers are expected to pay $1 billion in deductibles
Based on an analysis by the Kaiser Family Foundation, it is estimated that about 8.2 million Americans will have to pay deductibles, and health insurers are expected to pay a total of $1 billion to policyholders.
Are you wondering how much money could be coming your way? Not all check totals will be the same, and deductibles may vary by plan type, insurer and location.
Here is a summary of discount check reviews:
- For individual health care plans, policyholders can expect an estimated refund of $141.
- For those parts of a small group health care plan, each individual can expect an estimated reimbursement of $155.
- For those parts of a large group health care plan, each individual can expect an estimated reimbursement of $78.
It is worth noting that insurers do not have to give the discount in the form of a check. They may send a rebate check or offer a premium loan.
Got a discount check coming your way?
Your health insurance company will notify you if you are owed a deductible. You can contact your insurer directly if you have any questions. Keep in mind that exact deductible amounts will vary — so you may owe less or more than the amounts listed above.
Health care premiums in the United States are prohibitively expensive, and many families struggle to afford this important expense. Getting some cash back can help alleviate some of the frustration you feel about high health care costs.
How will you use the extra money? Some options include using the cash to pay an unexpected bill or expense, paying off credit card debt, or adding extra funds to your emergency fund. Another option is to treat yourself to something you’ve been wanting to buy.
If you’re looking to improve your financial situation, you’re not alone. Check out our personal finance resources for advice.
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