According to early estimates, health insurance companies will be issuing rebate checks later this summer totaling $1.3 billion. The checks are due because of a provision of the Affordable Care Act that large group health insurance plans must spend 85 percent of premium income on health care claims and quality improvement. For small group plans and individual plans, the requirement is 80 percent. The remaining 15 or 20 percent may be used for administrative expenses, including claims processing, marketing, and earning profits for investors.

The Kaiser Family Foundation analyzed preliminary data submitted by insurance companies to state insurance departments. The KFF analysis includes data for all states except California because HMO's in that state do not file to the National Association of Insurance Commissioners.

Individual market insurers expect to issue $426 million in consumer rebates. These rebates will go directly to consumers in the form of a rebate check. Nationwide, 215 insurance plans covering approximately 3.4 million people report that they expect to issue a rebate to individual market consumers. Overall, 31 percent of individual policy holders are expected to receive rebates, from a high of $305 in Alaska, $294 in Maryland, $243 in Pennsylvania to no rebates in Hawaii, Maine or DC and just $1 on average in New Mexico and Vermont.

Small group rebates are expected for plans covering 4.9 million enrollees nationally, totalling $377 million. The average amount is projected to be $76. This rebate may be offered to companies and consumers in the form of discounts on future premiums. The amounts of rebates and percentage of enrollees due rebates varies greatly by state.

In the large group market, more insurers expect to meet the 85-15 rule. In 14 states, insurers reported that they did not expect to be required to offer rebates. But at the same time where rebates are due the total exceeds either the individual or the small group market. The expected national total is $541 million. Rebates will be issued on behalf of 19 percent of large group enrollees.

The Kaiser report has charts by state for each of the three markets -- individual, small group, and large group -- with details on rebate amounts and percentage of qualifying enrollees.