Your company
may have recently received information from your health insurance carrier
regarding a Medical Loss Ratio Rebate. As part of the Health Care Reform
legislation it requires a certain percentage of the employers premiums go
towards medical claims versus administration expenses. In addition,
Massachusetts has its own regulations and for small groups in Massachusetts it
is 90%. Your company may be entitled to a rebate check if your health
insurance carrier contributed less than 90% of your group’s premium toward
medical claims.
There are two
different ways the employer may use the refund. The employer may keep the
amount given to them and use it toward future premium costs. Or the
employer may give the refund back to the employees. The health insurance
carriers have begun to mail out the rebate checks to Massachusetts
employers. If you are unsure of how to distribute the refund, please
visit the link below to the Department of Labor’s website for additional
information. Please visit “The
Best Bottom Line” to remain up to date on health care reform as well as
other HR related topics. Please feel free to contact our office at
(978)-777-6554 with any questions you may have.
Thank You.
