On December 7, 2011, the Department of Health and Human Services issued final rules on the calculation and payment of medical loss ratio (MLR) rebates to health insurance policyholders. Rebates are scheduled to begin during 2012. The link below has some frequently asked questions and answers on the federal tax consequences to a health insurance issuer that pays a MLR rebate and an individual policyholder that receives the MLR rebate. Information is also provided on the federal tax consequences to employees when a MLR rebate stems from a group health insurance policy. Click here to read the full Q&A document.
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Health Care Reform,