Final Rule Issued On Consumer Rebates And Notification

Most health insurers this year must at least inform policyholders that their coverage met the minimum spending threshold under the federal health law, even if they don’t owe consumers a rebate, a final rule out Friday says.

The rule splits the difference between industry, which did not want to send any notice to those not owed a rebate, and consumer groups, which said informing policyholders of the exact percent that each insurer spent on medical care would be valuable. Under the rule, the notices do not need to include the exact figure. The rule says such notices are a one-time effort to reflect spending in 2011.

Insurers are required to offer rebates if they fail to spend at least 80 percent of premiums on medical care or quality improvements.