If you are not familiar with “Obamacare” it is the newest of the health care laws that requires all insurance companies to use at least 80% of their revenue that come in from premiums on medical care instead of the administrative costs.
If for some reason your insurance provider does not meet these criteria’s they then have to send out rebates, which are referred to as Medical Loss Ratio Rebates, to all of the policyholders and employees that have group health insurance plans.
How to Get the Rebate
In order to be eligible to get the rebate you do not have to apply. If your insurance company owes you a rebate they will simply send out the check in the mail.
Does The Rebate Affect Taxes?
Most people will not have the rebate affect their taxes at all. However, a small portion of people who receive the rebate will have to claim it during tax season.
For example, if your medical expenses during the prior year totaled more than 7.5% of your income and you wrote off your insurance premiums you may be required to make note of the rebate on your taxes.
However, if you use tax software such as TurboTax 2015 they will keep you updated with all of the health care tax law amendments. They also have a free tax estimator you can use anytime, day or night.