Health Insurers Required to Credit Obama When Sending Out Rebate Checks

Let our journalists help you make sense of the noise: Subscribe to the Mother Jones Daily newsletter and get a recap of news that matters.


It’s rebate time! One of the geekier aspects of Obamacare is that it allows insurance companies to spend no more than a maximum of 20% on overhead costs (15% for large group plans). The rest of your premium dollars have to be spent on actual healthcare. This part of the law went into effect on January 1, which means that starting soon, any insurance company that spends more than 20% on overhead has to send out rebates to customers.

But here’s the election-year angle on this. Not only do insurance companies have to send out rebates to lots of people, they have to tell them exactly why they’re getting the rebates. Here are the first two sentences of the letter as mandated by HHS:

This letter is to inform you that you will receive a rebate of a portion of your health insurance premiums. This rebate is required by the Affordable Care Act — the health reform law.

The checks aren’t huge. The Kaiser Family Foundation estimates that individuals will receive an average of $127, though the average amount will be over $200 in some states. The average rebate in small and large group plans will be smaller, but a fair number of people will receive rebates over a hundred dollars.

Does this matter? Maybe a little bit. I’d guess that it depends on whether the Obama campaign decides to make healthcare a significant talking point this year. If they do, this will have an effect. If they decide to duck the issue, it probably won’t.

IT'S NOT THAT WE'RE SCREWED WITHOUT TRUMP:

"It's that we're screwed with or without him if we can't show the public that what we do matters for the long term," writes Mother Jones CEO Monika Bauerlein as she kicks off our drive to raise $350,000 in donations from readers by July 17.

This is a big one for us. It's our first time asking for an outpouring of support since screams of FAKE NEWS and so much of what Trump stood for made everything we do so visceral. Like most newsrooms, we face incredibly hard budget realities, and it's unnerving needing to raise big money when traffic is down.

So, as we ask you to consider supporting our team's journalism, we thought we'd slow down and check in about where Mother Jones is and where we're going after the chaotic last several years. This comparatively slow moment is also an urgent one for Mother Jones: You can read more in "Slow News Is Good News," and if you're able to, please support our team's hard-hitting journalism and help us reach our big $350,000 goal with a donation today.

payment methods

IT'S NOT THAT WE'RE SCREWED WITHOUT TRUMP:

"It's that we're screwed with or without him if we can't show the public that what we do matters for the long term," writes Mother Jones CEO Monika Bauerlein as she kicks off our drive to raise $350,000 in donations from readers by July 17.

This is a big one for us. So, as we ask you to consider supporting our team's journalism, we thought we'd slow down and check in about where Mother Jones is and where we're going after the chaotic last several years. This comparatively slow moment is also an urgent one for Mother Jones: You can read more in "Slow News Is Good News," and if you're able to, please support our team's hard-hitting journalism and help us reach our big $350,000 goal with a donation today.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate