The Affordable Care Act requires all insurance companies to pay out at least 80% of the money they receive as premiums to pay claims. It’s called the Medical Loss Ratio (MLR).

Blue Cross says, “We received a one-time payment from the federal government that impacted our MLR in 2018. As a result, we amended and refiled our 2018 MLR report consistent with CMS guidance. If eligible for an MLR rebate for the 2018 MLR reporting year, we will provide MLR rebates by May 31, 2021.”

You will get this adjustment if you had a Blue Cross Affordable Care Act compliant plan in 2018.

You don’t need to adjust your monthly automatic bank deduction. Blue Cross will do that with your bank.

You will pay a smaller premium amount in May 2021 if you pay by invoice.

This isn’t recurring. You’ll pay your normal premium for June.

You won’t get this adjustment if you have a pre-ACA “grandfathered” or “grandmothered” plan.

You won’t get this premium reduction if you didn’t have a Blue Cross Affordable Care Act health insurance plan in 2018.

This does not have anything to do with any government stimulus programs.

Our clients know we have the latest information to help them understand and benefit from their health insurance. If you’re not getting this service from your health insurance agent, call Jerry S. Pearlstein Insurance 847-362-8888.