Under the Affordable Care Act, also known as Obamacare or the ACA, health insurance companies must obey the Medical Loss Ratio or 80/20 rule, meaning they can’t spend more than 20 percent of premiums on overhead such as salaries and bonuses and must devote at least 80 percent to patient care costs.
Some insurers already complied with the rule and do not owe rebates. If your insurer owes you a rebate, it must issue the check by August 1, 2014. If you paid premiums through your employer, the business will receive the check and can either refund the money to you or use it toward other ways that help employees, such as improving employee benefits.
According to the government, insurers nationwide owe 6.8 million customers roughly $330 million this year, an average of $80 per family.
The 80/20 rule only applies to individual and group insurance coverage, not to the self-insured plans common to very large corporations.