More than 3 million Americans covering the cost of their own insurance will get rebates from their insurers over the next few months.An estimated $1.3 billion will be doled out to individuals and small businesses under a clause in the Affordable Care Act set to kick in this August, according to a new report from Kaiser Permanente. The average rebate will be about $127.
State by state, rebates will vary widely: For example, checks in Alaska, Maryland, Pennsylvania, Idaho, and Mississippi will average between $230 and $300, while New Mexico and Vermont’s rebates will be so low ($1) that it’s likely insurers won’t even have to issue them.
Part of the point of Obamacare was to make insurers adjust the way they prioritised their spending. They’ll be required to dedicate at least 80 per cent of their revenue on health care claims and quality improvement, with just 20 per cent reserved for admin costs, marketing and reeling in profits for investors, Kaiser says.