Checks not guaranteed for all insurance rebates

  RICARDO ALONSO-ZALDIVARWASHINGTON -- The check may not be in the mail.

The Obama administration said in a report Thursday that 12.8 million people will benefit from health insurance rebates averaging $151 per household. But the number of families actually getting a check will be much smaller, experts say.

The rebate report is the latest in a stream of positive news from the administration about President Barack Obama's health care overhaul, ahead of a Supreme Court decision on the signature legislation that aims to cover most of the uninsured and requires nearly every U.S. resident to have coverage.

But what the report didn't spell out clearly is that nearly two-thirds of the 12.8 million benefitting are only entitled to pro-rated rebates, because they are covered by employers who pay most of their premiums. Workers typically pay about 20 percent of the premium for single coverage, 30 percent for a family plan. Employers pay the rest.

What's more, employers can plow all the rebate money, including the workers' share, back into improving the company's health plan. For example, they could shave premiums by a few dollars in each pay period.

So how many households will get rebate checks in the mail?

"We wouldn't know that at this particular point," acknowledged Mike Hash, head of the health reform office at the federal Health and Human Services department. Others looking at the government's figures suggest it may be closer to 3 million.

The health care law requires insurers to spend at least 80 percent of the premiums they collect on medical care and quality improvement, or return the difference to consumers and employers, in what's called the 80/20 rule. It's the first time the government has imposed such a requirement and rebates are due by Aug. 1.

If the law is overturned entirely, it's unclear what would happen to this year's rebates. Certainly insurers would not face rebates in future years. If the law stands, the 80-20 requirement will force the companies to run a tighter operation, keeping administrative costs in check.

It stands to reason that a big chunk of the rebates will go to employers, not consumers, said Larry Levitt, an expert on private health insurance with the Kaiser Family Foundation.

"For many people it's the employer who is paying the bulk of the insurance premiums," said Levitt. "If the premiums were too high, it's the employer who should be getting the benefit of the rebate."

According to the administration report, 2.6 million households due rebates purchased their coverage directly from an insurance company. Levitt said it's this group that is most likely to get a check in the mail. Those households are home to some 4 million people.

Even if most people don't actually see a check, Levitt said rebates are still one of the most tangible early benefits of the health care law.

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National Flood Insurance Plan: How You Can Benefit From It

There are many individuals who feel that not a lot can be done to offer assistance when a community falls victim to a flood. The truth is that there is a large amount of assistance that can be offered. Assistance to those in flood damaged communities comes from non-profit organizations, community members, other American citizens, and the federal government. Perhaps the greatest assistance available is the assistance offered by the government. That assistance comes in the form of a national flood insurance plan.

Many individuals whether they fall victim to a flood or not, wonder exactly what a national flood insurance plan is. In the past, when an individual or community suffered flood damage the government offered assistance through disaster relief. Disaster relief was and still is important, but it did not solve the problem of flooding. That was why in 1968, Congress developed the National Flood Insurance Program.

The National Flood Insurance Program is overseen by the Federal Emergency Management Agency (FEMA). Many individuals know what FEMA is, but most Americans are relatively unfamiliar with the National Flood Insurance Program. The National Flood Insurance Program has a wide variety of goals and purposes. Perhaps, their most important purpose is to offer a national flood insurance plan to all Americans.

The National Flood Insurance Program offers affordable, yet quality, flood insurance coverage to all Americans. Whether homeowners live in an area that rarely sees flooding or they live in a flood prone area, a national flood insurance plan can offer assistance. The coverage offered by a national flood insurance plan is what makes it possible for many homeowners to rebuild or repair their home after flood damage has occurred.

Having a national flood insurance plan, such as the one offered by the National Flood Insurance Program, helps to limit the number of homeowners who do not have flood insurance. Homeowners without flood insurance coverage put themselves, their home, and their finances at risk. Most Americans are unable to pay for flood damage repairs on their own; therefore, flood insurance is necessary. Without it, a large number of Americas would lose their home or go into debt trying to repair or rebuild it.

Coverage under the national flood insurance plan is obtainable two ways. National flood insurance plan coverage can be purchased directly through the National Flood Insurance Program or it can be obtained through a licensed flood insurance agent. There are many individuals who wonder which is the best way to obtain this important coverage. The decision is honestly up to the homeowner, but there are a number of benefits to purchasing the coverage through a licensed agent.

The goal of the National Flood Insurance Program is to keep flood insurance affordable. To do so, they must closely regulate the amount of money coverage plans are being sold for. This often prevents them from offering deals and discounts on flood insurance. Agents, such as AmeriFlood, are able to offer these discounts. AmeriFlood is currently offering a 12% discount on all national flood insurance plans. The discount comes in the form of an upfront rebate.

Regardless where you choose to purchase your national flood insurance plan from, there are a number of benefits to doing so. Don't be left standing alone in the water flooding your home. Obtain flood insurance and you will be receiving the assistance that you so greatly need.

Ginger Wade is a writer for (Ameriflood) where you can find useful information about a National Flood Insurance Plan and other related information.