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Rebate checks thanks to Affordable Care Act

Here is the first page of a letter sent to one of our North Carolina friends from WellPath explaining that the Affordable Care Act requires insurance companies to spend a certain percentage of premiums on health care. (You can click on the letter to get a better look.) As the letter notes, “No more than 15 percent of premiums may be spent on administrative costs such as salaries, sales, and advertising.” When those limits are exceeded then rebates are due. This is another important consumer protection provided by reform.

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