Individual market insurers are the ones on the hook for the bulk of the refunds—a total of nearly $2 billion, according to preliminary estimates.

Consumers are expected to reap the rewards of excessive premiums over the last few years, according to a new analysis from the Kaiser Family Foundation that said premium rebates should hit a record $2.7 billion this fall.

The result of the Affordable Care Act’s medical loss ratio provision, which requires insurers to spend at least 80 percent of their premium income (85 percent for large group plans) on claims and quality improvement over the past three years, the rebate total last year was $1.3 billion—a record at the time.

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Marlene Satter

Marlene Y. Satter has worked in and written about the financial industry for decades.

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