November 30, 2015
Area(s) of Interest: Health Care Reform
American consumers have received more than $2.4 billion in premium rebates since 2011 because of the Affordable Care Act (ACA), according to a recent report from the Centers for Medicare and Medicaid Services (CMS). The rebates are the result of the ACA provision that requires health insurance companies to spend at least 80 percent of premium dollars on health care.
In 2014 over 5.5 million consumers received nearly $470 million in rebates, for an average of $129 per family. California consumers received approximately $98 million in rebates for a population of 723,000 with an average rebate for families of$158.
The report shows that the number of consumers receiving refunds decreased by more than one million in 2014, from approximately 6.8 in 2013 to 5.5 million in 2014. This is a reflection of the extent to which health plans have begun to provide more value for consumer premium dollars up front, says CMS.
Consumers who are owed a rebate for 2014 should have received a notice from their issuer by October 30, 2015.
Click here to read the report.