Due to a rule in the 2010 Affordable Care Act, US health insurers generally have to spend at least 80 percent of premium dollars on health care and quality, not administrative overhead or marketing. Insurers that don’t meet or exceed this standard, are sending millions in rebates back to the consumer.
In May, insurers were required to report the refunds that will be sent out later this summer:
- BlueCross BlueShield of Tennessee has announced that it will pay $8.6 million to about 73,000 individual policyholders in August because they spent less than 80 percent of premiums on health care.
- In Arizona, more than $36 million in refunds will go to both consumers and small businesses. One insurer in the state, Blue Cross Blue Shield of Arizona, alone will pay out an estimated $8.7 million to more than 77,000 individual policyholders, and another $3.2 million to more than 3,700 small businesses. United Healthcare’s Golden Rule Insurance will refund nearly $8.7 million to more than 30,000 additional Arizona policyholders.
- Two insurers in California will pay out more than $50 million in rebates to nearly 1 million customers statewide.
The rule encourages insurers to give you better value for your premium dollar and holds them accountable if they don’t. This is just one way the new health care law is helping American families and businesses get a fair deal when it comes to their health care.
(Source: The White House)