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 to 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 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
rebate. 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 rebates
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.
