Beginning in 2011, health insurance issuers are required to spend at least 80 or 85 percent of their premiums on health care and health quality improvement activities, or provide rebates to the policyholders for the failure to do so. The first round of rebates, based on insurer financial data for 2011, is due by August 1, 2012. The Department of Labor issued guidance on how the rebates should be handled by ERISA group health plans.

Technical Release 2011-04 provides very specific parameters on how the rebates should be analyzed and handled by ERISA-covered group health plans and their sponsors. The advice includes:

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This entry was posted by cmonfils on Thursday, December 22nd, 2011 at 12:06 pm and is filed under DOL, ERISA. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.