Nearly 700,000 Georgians will get a rebate from their health insurance plan in the coming months as the result of a provision in the federal health care overhaul.
A Kaiser Family Foundation analysis found 16 insurance plans in Georgia have to pay more than $30 million in rebates because they did not spend at least 70 percent of their premiums on claims.
“Insurers in the individual market in Georgia expect to issue $4 million in rebates to over 100,000 people,” said Cynthia Cox, a Kaiser fellow who helped analyze the rebate data. “For employer-sponsored plans in Georgia, they expect to issue nearly $27 million in rebates.”
Cox said the average rebate will be $35 for 110,000 Georgians who don’t get insurance through an employer. Some people will get checks in the mail and others will get a discount on future premiums.
The remaining rebates, due to employer-sponsored plans, will be more complicated.
“In general, rebates will go to employers and whether and how they get passed down to workers will depend on the details of the plan,” Cox said.
This is the first year for the rebates under the health law. They must be paid by August 1st.
A provision in the federal health care overhaul requires plans to use 80 percent of their income for claims. Georgia has a two-year waiver, putting the standard at 70 percent this year and 75 percent next year.