In compliance with the medical loss ratio rules of The Affordable Care Act, insurers are in the process of paying out premium refunds for 2018.
A client with 33 employees received a check this week for $89. Unless he pays 100% of the premium (and who does that?), the money has to be proportionately “distributed” to those covered on the health plan.
Consider the premium may be different for every enrolled individual based on age. Consider, the premium split may be different for employees and dependents. Consider, some current employees may not have been on the plan and vice versa. The calculations may be painfully complicated and end up as tiny amounts.
Now consider every employee on the plan gets a letter from the insurer announcing the rebates but without any detail. Will they see your new car and incorrectly connect the dots?
My advice. Announce what in fact you received and that you’ll host a holiday lunch. Problem solved.
In related news, Trump Industries has 22,450 employees covered under a fully insured health plan that has received rebates in each of the last four years. “Informed sources” tell me this is why his tax returns haven’t been finalized.
“And now you know the rest of the story!”
