Obamacare Rebates: President Touts Insurance Checks- But Who Will Actually See Them? Healthcare Rerform Update 2013

Obamacare rebates will be received by millions of Americans this summer.

About 8.5 million Americans will receive insurance rebates thanks to Obama's Affordable Care Act, which is also dubbed Obamacare.

The Obamacare rebates are due to the new bill, which mandates that  companies that do not spend at least 80 percent of premiums on health care must now refund the difference to consumers.

Obama's controversial healthcare act was touted by the President as part of his push to educate Americans as the new laws go into effect.

 "Last year, millions of Americans opened letters from their insurance companies. But instead of the usual dread that comes from getting a bill, they were pleasantly surprised with a check," he said. "Another 8.5 [million] rebates are being sent out this summer, averaging around a hundred bucks each."

The biggest rebates will be seen in Washington State, where consumers will receive an average of $512, and in Massachusetts, where consumers will see $457,

Only about one third of those due rebates will receive checks or refunds. They are the consumers who purchased a policy on their own, after-tax, rather than through employers.

The rest of the group will not receive direct financial reimbursement.

Instead, those consumers with healthcare sponsored by employers will see the benefits later due to a reduction in premiums or better benefits.

This is, in part, due to taxation-premiums on group policies are paid with pre-tax dollars, which would then be subject to taxation.

"Policyholders must ensure that the rebate is used for the benefit of subscribers," the Obama administration guidelines stated. "The final rule also requires that issuers provide notice of rebates to enrollees and the group policyholder."

Everyone entitled to a rebate must legally receive a notice explaining the rebate and how it will be provided, whether it is via check or not.

The White House claims those consumers who don't receive rebates are already experiencing savings and better quality care on their health insurance plan

"Even if you don't get a rebate there's a good chance that these reforms are helping you as well because one easy way to meet the goal of spending 80 percent of every dollar on care is to charge less for your care," Obama said.

"Because of this new rule, because of the fact that it improves the value of the coverage that you purchase, last year alone Americans saved $3.4 billion in lower premiums," he said.

Many Americans are still suspicious of the healthcare reform bill, despite the tangible, numerous financial benefits.

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