Low medical loss ratios will compel insurers to return nearly $2.5 billion to their customers for the 2019 reporting year.

Under federal law, individual and small group insurers must spend 80 percent of their premium revenue on health care services and large group insures must spend 85 percent.  If they fail to do so they must return the difference to their enrollees, whether individuals, employers, or a combination of the two.

In all, insurers owe nearly $2.5 billion – the most ever in a single year – to more than 11 million customers.  Rebates can be paid as premium credit or, in the case of individual enrollees, by check.

Learn more about which insurers owe the most and which states will see the biggest rebates for their residents in this Health Affairs Blog article.