US health insurance firms issue $1.1bn in rebates to policy holders

Nearly 13 million US citizens are receiving rebates totalling $1.1bn (£0.7bn; €0.9bn) from their health insurance companies this month.

President Barack Obama has pointed to the rebates as a benefit of the Affordable Care Act, the health reform law he passed in March 2010.1

The rebates were due because some health insurance companies failed to spend 80% to 85% of the insurance premiums they received on providing medical care, as required by the law.

The medical loss ratio, as it’s called, was 80:20 for insurance …