Dealers could receive rebate checks from health insurers

Dealers could receive rebate checks from health insurers

Dealers may receive rebate checks from their health insurance companies by the end of the month because of a requirement of the Affordable Care Act.

Under the ACA, health insurers must spend a minimum percentage of the premiums they collect on health care services and quality improvement. (The percentage is 85 percent for groups with 51 or more employees and 80 percent for groups with 50 or fewer employees.) The percentage, called the Medical Loss Ratio (MLR), is calculated on an insurerês business in a market segment, not in the group (e.g., a dealership).

If a minimum MLR is not met, the insurer must pay a rebate to the groups in that market. That means dealers could receive rebate checks this week. The deadline to receive the checks is September 30. Aetna, CareFirst and UnitedHealthcare have started mailing their checks. The group generally puts the money toward the employerês share of future medical premiums.

Any dealers with questions may contact Ed Mullaney in WANADAês insurance department, at 202-237-7200 or

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