Private Insurers Are Expected to Pay $2.1 Billion in Rebates to Consumers This Year for Excessive Health Insurance Premiums Relative to Health Care Expenses

Private insurance companies are expecting to pay out $2.1 billion in rebates to consumers this fall, the second highest amount ever issued under the Affordable Care Act, according to a new KFF analysis.

The rebates, which are calculated based on the share of premium revenues that insurance companies paid out for health care expenses and quality improvement, are roughly $400 million lower than last year’s record high of $2.5 billion, but more than 50 percent higher than the $1.4 billion insurers sent back to policy holders in 2019.

Rebate amounts will vary by market. Individual market insurers account for the majority of the payments, with expected rebates of at least $1.5 billion, finds the analysis of data reported by...

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