An estimated 9 million Americans could receive rebates from their health insurers in 2012. Will you be one of them?

The 2010 Affordable Care Act protects consumers by requiring health insurance companies to spend between 80-85 percent of your premium dollar on medical care or improvements, instead of on advertising or executive salaries. The term used for this rule is “medical loss ratio,” and it protects consumers from insurers who increase prices without good reason or justification.

If insurers fail to meet this standard – one that many insurers already achieve now – they will be required to issue rebates to their customers. The federal Health and Human Services Department estimates these rebates could average $165 per individual.

The customers most likely to receive rebates are those who are not part of a large plan through their employer, but rather folks who buy their insurance on the individual market. This will include many rural small business owners and self-employed workers, like farmers and rural entrepreneurs.

Insurers will be required to publish their medical claims costs, administrative costs and taxes by June 1. Those who qualify for a rebate will receive checks this summer.

One way insurers can avoid paying rebates is by lowering premiums. Either way, consumers win. If you have questions, contact me, Steph Larsen, at 402.687.2100 or StephL@cfra.org.