Personal Liberty Digest™ will be upgraded this weekend to reflect a dynamic new look and mobile-friendly viewing to enhance your experience! Plus, we'll be providing even more of the compelling content you've come to expect, delivered in a whole new way!

  Comments Subscribe to Personal Liberty News Feed Subscribe to Personal Liberty

Not Everyone Gets Obamacare Rebates

WASHINGTON (UPI) — Don’t hold your breath waiting for a rebate from a U.S. insurance company, a law professor advised.

The new healthcare act requires insurance companies with high administrative costs — those deemed not paying out enough in insurance benefits — return money in one of a variety of forms to their customers.

Some companies are sending rebates. Cash in hand is a clear selling point for the law, The New York Times reported Monday.

But it doesn’t mean a check is on the way.

“I’ve been trying to explain that to people — that very few people would be getting a check,” Timothy Jost, a professor at Washington and Lee University, told the Times.

The Department of Health and Human Services said insurance companies would return $1.1 billion to customers in 2012.

In Vermont, the average rebate check is expected to be $807 per family. In Alaska it will be $622 per family; in Alabama, $518.

Two states, New Mexico and Rhode Island do not have insurance companies that return too little to consumers, as defined by the law, so there will be no checks sent in those states.

The cap for companies has been set at 80 percent. Companies returning less than 80 percent to consumers in the form of insurance benefits need to pay down to that level. For companies that handle large employers, insurance companies must pay 85 percent back to consumers in the form of benefits.

There are 75 million insured customers who could see money returned to them, but only 12.8 million will get rebates in 2012, the Obama administration said.

Companies can also lower their administrative costs-to-payout ratio using other means, such as lowering premiums, the newspaper said.

UPI - United Press International, Inc.

Since 1907, United Press International (UPI) has been a leading provider of critical information to media outlets, businesses, governments and researchers worldwide.

Facebook Conversations

Join the Discussion:
View Comments to “Not Everyone Gets Obamacare Rebates”

Comment Policy: We encourage an open discussion with a wide range of viewpoints, even extreme ones, but we will not tolerate racism, profanity or slanderous comments toward the author(s) or comment participants. Make your case passionately, but civilly. Please don't stoop to name calling. We use filters for spam protection. If your comment does not appear, it is likely because it violates the above policy or contains links or language typical of spam. We reserve the right to remove comments at our discretion.

Is there news related to personal liberty happening in your area? Contact us at


Sign Up For Personal Liberty Digest™!

PL Badge

Welcome to,
America's #1 Source for Libertarian News!

To join our group of freedom-loving individuals and to get alerts as well as late-breaking conservative news from Personal Liberty Digest™...

Privacy PolicyYou can opt out at any time. We protect your information like a mother hen. We will not sell or rent your email address to anyone for any reason.