The following is an excerpt from ABBY GOODNOUGH | July 30, 2012 | Nytimes.com |
Lucia Harkenreader’s check landed in her mailbox last week: a rebate of $456.15 from her health insurance company, with a letter dryly explaining that the money came courtesy of the federal health care law.
“It almost looked like junk mail,” said Ms. Harkenreader, a tax accountant in Mountain Top, Pa., who said she did not love the overall law but was pleased at the unexpected windfall. “If this is part of Obamacare, I’m happy that somebody is finally coming down on the insurance companies and saying, ‘Look, let’s be fair here.’ ”
The law requires insurers to give out annual rebates by Aug. 1, starting this year, if less than 80 percent of the premium dollars they collect go toward medical care. For insurers covering large employers, the threshold is 85 percent.
As a result, insurers will pay out $1.1 billion this year, according to the Department of Health and Human Services, with an average rebate of $151 per household. The highest average amounts are going to people in Vermont ($807 per family), Alaska ($622) and Alabama ($518). No rebates will be issued in New Mexico or Rhode Island, because all the insurers in those states met the 80/20 requirement.
To read more visit: Nytimes.com