Health Insurance Rebates Coming Soon
Insurers owe $1.1 billion to about 12.8 million Americans. Will you be getting a check? If so, how much?
If you have health insurance, you might be getting a check in the mail soon.
DOWNLOAD: The Kip Tips iPad App
That's because the health care reform law requires health insurance companies that don't meet a certain standard of value to reimburse policyholders. Under the law, health insurers cannot spend less than 80% of premiums -- 85% for large group plans covering 50 or more employees -- on medical care and quality improvements. Companies must reimburse policyholders if they fail to meet that standard, called the 80/20 rule.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Nearly 12.8 million Americans will receive $1.1 billion in rebates this year -- about $151 per household -- from insurance companies that didn't meet the 80/20 rule in 2011. Rebates must be paid by August 1 in one of the following forms:
--Rebate check in the mail
--Lump-sum reimbursement to the account used to pay the premium (if paid by credit or debit card)
--Reduction in future premiums
--Rebate applied by employer in a manner that benefits employees
To find out whether you'll receive a rebate, you can use a new tool developed by the Department of Health and Human Services. Workers who are covered by an employer who is self-insured are not eligible for rebates.
If you do get a rebate, you might owe taxes on the amount you receive. See $1 Billion in Health Insurance Rebates: Taxable or Tax-free?.
To continue reading this article
please register for free
This is different from signing in to your print subscription
Why am I seeing this? Find out more here
Award-winning journalist, speaker, family finance expert, and author of Mom and Dad, We Need to Talk.
Cameron Huddleston wrote the daily "Kip Tips" column for Kiplinger.com. She joined Kiplinger in 2001 after graduating from American University with an MA in economic journalism.
-
Stock Market Today: Stocks Soar on Apple Buyback News, Jobs Data
The main indexes rallied hard to end the week thanks to Apple's $110 billion stock repurchase plan and a big April payrolls miss.
By Karee Venema Published
-
Three 'Hidden Costs' of Health Savings Accounts (HSAs)
Health Savings HSAs offer valuable tax benefits, but can 'hidden costs' erode those advantages?
By Kelley R. Taylor Last updated
-
5 Ways to Save Money on Vacation Rental Properties
Travel Use these strategies to pay less for an apartment, condo or house when you travel.
By Cameron Huddleston Last updated
-
10 Annoying Hotel Fees and How to Avoid Them
Travel Here's how to avoid extra charges and make sure you don't get stuck paying for amenities that you don't use.
By Cameron Huddleston Last updated
-
How to Appeal an Unexpected Medical Bill
health insurance You may receive a bill because your insurance company denied a claim—but that doesn’t mean you have to pay it.
By Rivan V. Stinson Published
-
Amazon Prime Fees Are Rising. Here’s How to Cancel Your Amazon Prime Membership
Amazon Prime Amazon Prime will soon cost $139 a year, $180 for those who pay monthly. If you’re a subscriber, maybe it’s time to rethink your relationship. Here’s a step-by-step guide to canceling Prime.
By Bob Niedt Published
-
How to Haggle for Almost Anything
Smart Buying Learning how to haggle is an invaluable skill. These strategies will help you negotiate a better price for just about any product or service.
By Katherine Reynolds Lewis Last updated
-
Disability Insurance Can Provide COVID Coverage
Coronavirus and Your Money If you are concerned about long-term complications from COVID-19, consider disability insurance coverage.
By Rivan V. Stinson Published
-
21 Things You Can't Return to Amazon
Before tossing these items into your virtual shopping cart, be sure to read Amazon's return policy first.
By Bob Niedt Last updated
-
How to Avoid a Charity Scam
personal finance Scammers never quit, even when you're trying to be altruistic. But you can avoid getting duped if you do your homework.
By Rivan V. Stinson Published