Some employers are receiving health insurance
rebates. If you are one of those lucky
employers you are required to act quickly.
Generally you have
three months to pass the employees’ share back to the employee.
If you are wondering why you received the rebate, it is
because the health reform law requires insurers that don’t spend enough of the
premiums on medical care and quality improvement to rebate part of the
premiums.
The rebates started going out in July. We are seeing some employers generating goodwill
by giving the full amount to employees through premium reductions or cash
payouts, even though businesses can generally keep the portion of rebates
attributable to employer contributions.
A word of caution, there are complicted rules on the
potential taxability of the rebates.
