Rebates from health insurance companies should go to more than 3 million individual policyholders and thousands of employers this year, a report from the Kaiser Family Foundation shows. Here's how President Barack Obama's health care law works:
• Companies must provide rebates if they do not meet those standards.
Who gets rebates?
• Almost one-third of consumers in the individual market will get rebates averaging $127. These are consumers who are not covered by an employer and purchase their policies directly from an insurance company.
• Average amounts will vary significantly by state. The highest will be paid to consumers in Alaska (average of $305), Maryland ($294) and Pennsylvania ($243). On the opposite side of the scale, no individual market insurers in Hawaii, Maine and Washington, D.C., expect to issue
• Nationwide, rebates to individual consumers will total $426 million.
• In the small employer market, 146 insurance plans covering nearly 5 million workers and dependents will issue $377 million in refunds. Employers do not have to pass those on to workers. They also can opt for a discount on next year's premiums.
• In the large employer market, 125 plans covering 7.5 million workers and dependents will issue $541 million in rebates.