Some Consumers Could See Larger Rebates From Their Insurer This Year
By Consumers For Quality Care, on September 2, 2020
In the coming months, many people could be getting a rebate check from their insurers that is larger than it would normally be, according to a recent CNBC report.
Depending on your health coverage, you could see a rebate from your insurer in the coming months.
While such paybacks are issued yearly, the 2020 aggregate amount is anticipated to be $2 billion — about twice what it was last year, said Karen Pollitz, a senior fellow with the Kaiser Family Foundation.
The average 2019 rebate was $208, but that number varied greatly from state to state. For example, in Kansas, each person eligible for a rebate got an average of $1,359.
Insurers issue these rebates because most must adhere to a “medical loss ratio” that requires them to spend 80 percent of premiums paid in on medical care. Although insurers have been paying for millions of Americans to get treated for the coronavirus, they have avoided a lot of costs due to lack of elective surgeries and procedures.
Uncertainty persists in the industry, though. Experts have been uncertain about how the coronavirus will impact 2021 premiums, when things presumably will begin to go back to normal. Some have predicted a modest decrease while others have said premiums may increase by double digits.