You May Be Getting A Covid ‘Stimulus Check’ From Your Health Insurer Soon

Another round of ‘stimulus checks’ might be in a few individual’s future.

For those who have bought health insurance through the individual market, an average cash rebate of $299 might be collected in the fall.

Some of you may be asking why people are receiving rebates, and that’s because a number of insurance companies have failed to meet the ACA’s medical loss ratio threshold last year.

The individuals who can expect a rebate from their healthcare provider are individual market policyholders and small and large group insurance markets.

Broken down, members in the individual market can expect $299 per member, $127 per member in the small group market and finally, $95 per member in the large group market according to Kaiser’s analysis.

Keep in mind that these are estimates for now, until the final rebate numbers are calculated later this year.

By law, insurance companies have to start issuing rebates to eligible members later this fall, so when the leaves turn golden and the weather starts to cool down, check the mail frequently for a rebate.

For the individual market, insurers can issue rebates in the form of a premium credit or check and for those who have employer coverage, the rebate may be shared between the employer and employee.

In situations where the refund is exceptionally small for example, $5 for individuals or $20 for group rebates, the insurer is not required to process the refund since it may cost more to issue the rebate compared to the discount itself.

Come fall, keep in mind to keep an eye out for a possible COVID ‘stimulus check’ from your health insurer if you’re eligible.