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Health Insurer Rebates Under Obama’s Overhaul Won’t Be Taxed

Consumers won’t have to pay taxes on rebates they get from health insurance plans that violate spending rules in President Barack Obama’s 2010 overhaul, the U.S. said.

When rebates are required, the insurers would have to send customers an explanation of why they’re getting money back and how the sum is calculated, according to rules issued today by the Department of Health and Human Services. The industry is led by Minnetonka, Minnesota-based UnitedHealth Group Inc., the largest U.S. health insurer by revenue, and Indianapolis-based WellPoint Inc., the biggest by enrollment.