Health Insurance Rebates Expected in Connecticut

The Hartford Courant recently reported that Connecticut employers and individuals will receive $12.95 million in health insurance rebates by August 1, 2012 resulting from the federal health care reform act.  Across all types of health plans, rebates are due to 137,452 Connecticut consumers and the average rebate check will be $168.  Nationally, $1.1 billion in rebates is due on health plans representing 12.8 million Americans, resulting in an average payment of $151.

Under the federal Affordable Care Act, insurers that do not spend a required amount on medical expenses must pay rebates to consumers. For every premium dollar an insurance company receives in revenue for individual and small-group plans, the company must spend 80 cents for medical expenses for customers in those plans. For large groups, the insurer must spend 85 cents of each premium dollar.  This is called the medical loss ratio rule.