Health Insurers Required to Credit ObamaCare When Sending Out Rebate Checks

This is should have happen with the stimulus tax cuts too, but better late than ever. Via Mother Jones:

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.