Deadline Passes for Insurers to Send Small Business, Consumer Rebates Worth $1.1 Billion

The deadline for health insurers to send $1.1 billion in rebates to customers whose premium dollars they failed to spend in accordance with the Medical Loss Ratio provision of the Affordable Care Act was Aug. 1, and with millions of small employers getting money back, this news is evidence that reform is already starting to work for them.

Now is a critical time to inform these entrepreneurs about this important benefit within the new law. We are undertaking efforts to highlight the health insurance rebates in the media while also reaching out to small business owners via social media platforms, and we implore all small business advocates, organizations, chambers of commerce and legislators, to do the same.

Small Business Majority's recent opinion poll found that nearly three-quarters of small business owners support this provision of reform. The rule requires insurance companies to reimburse small business owners for part of their coverage costs if they neglect to spend at least 80 cents of every premium dollar on patient care and quality improvement.

Medical Loss Ratio is designed to put hard-earned money back in small employers' pockets while helping make the coverage market more efficient by eliminating superfluous expenses, and that can drive down the rate at which premiums rise. We're pleased the Affordable Care Act is holding insurance companies accountable for how they spend small businesses' money, and we encourage advocates and legislators to do everything in their power to ensure small business owners understand how the new law benefits them.