More than 8 million Americans may soon receive checks from their health insurers. Here’s How Much You Can Get

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8.2 million Americans have concession checks from private health insurance companies.

key points

  • Private health insurers that do not comply with the spending rules must reimburse policyholders for excess profits.
  • More than 8 million Americans will receive cashback checks ranging from about $78 to $155.

A little extra money is welcome, as we’ve all adapted to paying higher costs for everyday living. Millions of Americans are getting discounts through their health insurance companies, which means they’ll soon be getting extra money. If you are ready to receive a discount check, the bank can increase your account balance.

The Affordable Care Act outlines the rules that private health insurers must follow.

The Medical Loss Rate (MLR) provision requires insurance companies, which cover individuals and small businesses, to spend at least 80% of their premium income on healthcare claims and quality improvements. Up to 20% can be spent on management, marketing and profits.

For large group insurance plans, insurers must spend at least 85% of premium revenues on healthcare claims and quality improvements, leaving up to 15% for management, marketing expenses and profits.

Private insurers must reimburse policyholders when they do not meet these thresholds. They must do this by September 30 of each year.

MLR discounts are calculated based on a rotating three-year average. This year’s discounts are calculated according to the 2019, 2020 and 2021 financial statements.

More than 8 million Americans will be paid discount checks in the coming weeks.

Private insurers expected to pay $1 billion in rebate

According to an analysis by the Kaiser Family Foundation, an estimated 8.2 million Americans have discounts due, and health insurers are expected to pay a total of $1 billion to policyholders.

Wondering how much money will come your way? Not all check totals will be the same, and discounts may vary by plan type, insurer, and location.

Below is a breakdown of discount check estimates:

  • For individual health care plans, policyholders can expect an estimated $141 repayment.
  • For this portion of the small group health care plan, each individual can expect an estimated repayment of $155.
  • For this portion of the large group health care plan, each individual can expect an estimated reimbursement of $78.

It is worth noting that insurers do not have to provide the discount in the form of a check. They may send discount vouchers or offer premium credit.

Do you have a discount voucher in front of you?

Your health insurance will notify you if you owe a discount. If you have any questions, you can contact your insurer directly. Note that the exact discount totals will vary – so you may owe less or more than the amounts listed above.

Healthcare premiums in the United States are incredibly costly, and many households struggle to pay this significant expense. Getting some money back can help ease some of the frustrations you feel about high healthcare costs.

How will you use the extra money? Some options include using the money to pay an unexpected bill or expense, paying off credit card debt, or adding additional funds to your emergency fund. Another option is to indulge in something you’re considering buying.

If you want to improve your financial situation, you are not alone. Check out our personal finance resources for tips.

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