Obamacare Insurers to Owe Estimated $2.7 Billion in Refunds

Health insurers will refund at estimated $2.7 billion to 7.9 million Obamacare consumers this fall to pay back overcharges in recent years, nearly double the 2019 record of $1.3 billion in refunds.

Refunds, or rebates, to people who purchased health coverage through the Affordable Care Act individual marketplaces will average $420 per customer, according to a report released Friday by the Kaiser Family Foundation. More than 4.7 million people in that market are expected to receive the refunds, it said.

The refunds result from the Affordable Care Act’s medical loss ratio provision, which requires insurers to spend at least 80% ...