Still searching for a fourth stimulus check? Although a federal stimulus check seems unlikely, the government is forcing health insurance companies to pay back rebates to its members.
Maintaining high health insurance premiums is difficult in this time of the pandemic. Moreover, some Americans who might have lost their jobs continue to pay for their health insurance due to responsibility and necessity.
Unfortunately, not all your money is being spent on medical care. Approximately 25 to 33 cents of each dollar received is spent on health care administrative costs like billing and marketing! This means only 72 to 75 cents of every dollar is used for your saving account.
Lawmakers seem well aware of this strategy. According to Yahoo! Finance, the federal government adopted new procedures to ensure that health insurers don't pocket the money or splurge it on company marketing.
Insurance Rebate Can Get You $100 to $1000!
The Affordable Care Act enforces a new "medical loss ratio" requirement. Insurance providers have to spend 80% of the member premiums on programs like rebates, claims, and other activities that value the policyholders. This new type of financial support could include:
- Programs that help individuals manage their health through assessments, wellness coaching, and other similar lessons.
- Activities designed to reduce medical errors and improve patient safety.
- Hospital discharge plans to reduce the need for hospital readmissions.
Based on last year's records, insurers received approximately $2.5 billion in rebates. This year is expected around $2.1 billion. This money should ideally be distributed to over 10.7 million Americans.
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The rebate money budgeted and provided per American family would depend on their three-year average contribution. It would also depend on the state and region. For example, if 5 million consumers share a total of $1.52 billion, each would receive approximately $300.
Also note, if an employer covers your health insurance, the rebate might be split between you and the company. Refunds might drop to $5 to 20 per person.
How to Check If You're Getting Insurance Rebate
The state overseeing these insurance rebates would greatly affect the results. Last year, Kansas' average eligible policyholder received $1,359. On the other hand, Delaware received zero.
The first step to apply for these insurance benefits is to check on their availability and requirements. Fortunately, a medical loss ratio (MLR) search tool was released to make the search a lot easier. To use the tool:
- Head to this website
- Submit your reporting year, state or territory, and health insurance company.
- Click on Search.
This online tool would automatically calculate if your health insurance provider met the "medical loss ratio requirements" or not. If they fail, contact them immediately and you could be due for some financial rebate before the year ends.
Hopefully, this enforced rebate program should help many eligible Americans who struggle to comply with their expenses due to the pandemic.
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