MLR Rebate
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MLR Rebate

Together with CCHP returned a portion of members’ health insurance premiums from 2018 and/or 2019. Below is important information on how this rebate worked and the impact on our members.

The Affordable Care Act (ACA) requires health insurance companies to spend at least 80% of the individual premiums we collect each year on medical/pharmacy expenses as well as certain quality improvement initiatives. This percentage of total spend is called the Medical Loss Ratio (MLR). In 2018 and 2019, Together with CCHP’s total spend on medical/pharmacy expenses and quality improvement initiatives totaled less than 80% of the individual premium received. As a result, if you were enrolled with Together with CCHP for any part of 2019, along with enrolled subscribers that were new to our plan in 2018, you will be receiving a rebate check for a portion of the premiums you paid. This is your money, so you may cash your check and use the funds however you see fit. All checks for the 2018/2019 MLR rebate will be mailed by September 30, 2020. 

As a non-profit organization, Together with CCHP strives to only collect what premiums are needed to pay claims and continue operations. To that end, we are excited to pass this rebate back to our members and look forward to serving you in the future.  

We encourage members to utilize the FAQ below to gain a better understanding of the MLR rebate process and how it may affect you. Any questions related to taxation should be directed to a tax professional. 

Lastly, please make sure we have your most current address on file to ensure receipt of the rebate check. To update your information, please contact Customer Service at 844-201-4672. 

MLR Rebate Frequently Asked Questions

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What is the MLR rebate?
  • Insurance premiums are used by an insurance company to pay for one of two categories of services –clinical healthcare services or administrative costs. The percentage of premiums spent on healthcare services is called the Medical Loss Ratio (MLR). 
  • If too large of a percentage of premiums is spent on administrative costs instead of clinical healthcare services, health services for the insured may suffer. To prevent this, the Patient Protection and Affordable Care Act mandates that rebates be paid to insured individuals if at least 80% of premium dollars in the individual market (or 85% in the large group market) are not spent on clinical healthcare services.
How are rebates determined?
  • Rebates are determined on a state-by-state basis. Rebates are based on the claims and premiums for a group of policies in a state from the previous calendar year.
Is the MLR rebate taxable?
  • The MLR rebate is taxable if you paid health insurance premiums with pre-tax dollars, such as a Health Savings Account, or if you received tax benefits by deducting premiums you paid on your Form 1040 tax return form.
  • The MLR rebate is not taxable if you paid health insurance premiums with post-tax dollars or if you did not take a deduction on your Form 1040 tax return form for your premiums paid.
  • Speak with your tax preparer to determine if you need to report your rebate as income when you file your next Form 1040 tax return form.

Seek a tax advisor for more detailed assistance.

Will I receive any year-end tax forms from CCHP that I have to file?
  • Current IRS regulations state: You will receive a Form 1099-MISC from the health insurer if (1) the MLR rebate is $600 or more for the year, and (2) the health insurer knows that the rebate payment (or a portion of the payment) is taxable to you as the individual policyholder. If the insurer is required to file a Form 1099-MISC with the IRS after meeting the above requirements, the company will provide a copy of the Form 1099-MISC to the individual policyholder.
  • CCHP does not know any policyholder’s tax filing information or use of pre-tax dollars, therefore, CCHP would not be in a position to affirmatively state whether a rebate is taxable.  As a result, you will most likely not receive a Form 1099-MISC from CCHP.
  • Consult your tax advisor for more assistance.
What if my premium is subsidized by an Advance Premium Tax Credit?
  • According to CMS, current guidance for the individual market requires the health insurer to refund the entire rebate to the policyholder regardless of whether the premium was subsidized by an Advance Premium Tax Credit (APTC). One notable exception applies in states that elected to expand Medicaid through ACA marketplaces; however, Wisconsin is excluded from this exception.
  • Form 8962 Premium Tax Credit is included with an individual’s Form 1040 to determine the amount of premium tax credit and reconcile it with the APTC. Please consult with your tax advisor regarding the impact of the rebate on your credit.
  • Please refer to the flow chart for basic direction, and consult your tax advisor for detailed assistance.

Advance Premium Tax Credit

*What do pre-tax dollars mean?
  • When you pay for benefits, including health insurance, with pre-tax (also called before-tax) dollars, such as a Health Savings Account, the deductions are taken off your gross income before the calculation of income tax and after-tax deductions. Taxes are calculated based on this reduced taxable income amount (i.e. gross income minus pre-tax dollars). 
  • Having pre-tax dollar deductions results in less income tax paid than would otherwise be the case.
  • An example of pre-tax dollars is the use of a Health Savings Account.
Where can I find more information?
  • Be sure to seek a tax advisor for more detailed assistance on how this MLR rebate may impact your individual tax status.


“Medical Loss Ratio (MLR) Rebate FAQs.” Internal Revenue Service. 2019.

“Premium Tax Credit: Claiming the Credit and Reconciling Advance Credit Payments.” Internal Revenue Service. 2019. 

“Questions and Answers Regarding the Medical Loss Ratio (MLR) Reporting and Rebate Requirements.” Centers Medicare and Medicaid Services. 2015.

“Medical Loss Ratio.” Centers for Medicare and Medicaid Services.


RIA. (2019). 2019 RIA federal tax handbook. Retrieved from RIA Checkpoint database.



Children's Community Health Plan

PO Box 56099
Madison, WI 53705

Together with CCHP

Children's Community Health Plan

PO Box 1997, MS 6280
Milwaukee, WI 53201


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