Rebates totaling $1.3 billion from health insurance companies should go to more than 3 million individual policyholders and thousands of employers this year because of President Barack Obama’s health care law, a report from the Kaiser Family Foundation says.
Here’s how the law works:
– Insurers covering individual consumers and small employers must spend at least 80 percent of the premiums they collect on medical care and quality improvements. The benchmark is 85 percent of premiums for insurers covering large employers.
– Insurance companies must provide rebates if they do not meet those standards.