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Health & Fitness

Insurance corporations to pay refunds to consumers

Some insurance corporations are being forced to pay around $1 billion to 12.8 million Americans over the summer.

Some insurance corporations are being forced to pay around $1 billion to 12.8 million Americans over the summer. While not every family will get a rebate, those that do will find just a little economic relief. It is the very first tangible advantage of the 2010 medical care reform law often called "Obamacare." Resource for this article: Take good way Personal Money Network  

An awesome rebate

The kickback announcement came from the U.S. Department of Health and Human Services on Thursday, June 21. It said that the average rebate of $151 per family will be given to everyone affected.

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Business profits cannot come first

Any company that did not follow the 2010 law has to repay insurance premiums. The 2010 law said that 80 you 85 percent of all collected insurance premiums have to go to the medical care costs rather than company profits starting in 2011. The difference must be paid back to consumers by august 1 for any insurance provider that did not meet the ratio. Kathleen Sebelius, secretary of the Department of Health and Human Services, said in a statement:

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"The rule helps ensure consumers get fair value for their health care dollar."

Ways of getting it

You can get a reimbursement on a credit or debit card, a check in the mail or a reduction on future premiums with the kickback. These are the three options accessible.

Insured through employer

Any person who is covered by an employer with insurance will not get a check. That involves about two thirds of those affected. Workers could get paid checks by the company or might get put towards improving the healthcare plan for the company. Employers can choose what they want to do. Kaiser Family Foundation’s Larry Levitt said:

"For many people it's the employer who is paying the bulk of the insurance premiums. If the premiums were too high, it's the employer who should be getting the benefit of the rebate."

Precisely how many consumers can be ready to get a check at home is unknown at this time, according Mike Hash, head of health reform for the Department of Health and Human Services. However, according to the Star Tribune, others estimate it would be about 3 million, or those that bought insurance directly from a provider.

Supreme Court decision

The 2010 Patient Protection and Affordable Care Act will face a final decision from the U.S. Supreme Court right now though. Nobody will get a refund if the law is thrown out.

 

Sources

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