Insurance rebates coming to customers

TERRE HAUTE, Ind. (WTHI) - Good news for your wallets in this economy watch report.
         
As part of the Affordable Care Act, insurance companies nationwide are required to spend a certain percent of your payments on healthcare. If they don't, they have to give some back.

Starting this year, only 20% of insurance premiums can be spent towards salaries and administrative costs.

"It's an accountability piece," said Jacque Pentell from Forrest Sherer Insurance,  "and it's a piece that's put in place that an employee can know and expect that in one way or another going to receive 80% on their plan either in medical services or in rebates."

If the companies spent less than 80%, they owe you the difference, as long as the rebate is over 20 dollars.

However, that money might not come directly to you, especially if you paid through your work.

"They can actually give a cash disbursement to the employee or they can calculate their premiums to be at a lower rate so they will have less taken out of their check for their portion of contributions."

While this seems like a short-term bonus, it's also good for the long run.

This new rule is expected to lower premiums across the board as insurance companies look to cut costs.
     
Even if you don't get a rebate, that just means your insurance company is already giving you quality care and saving you money.

The rebate checks should arrive in the coming weeks.
     
Employers only have to give rebates to current participants in their plans.