The federal law requires most commercial health plans to spend at least 80 percent of the premiums they receive on patient care and quality improvements. If they don’t reach the required medical loss ratio, they must refund the difference to the enrollees.
The Department of Health and Human Services said 614,245 Florida residents are owed rebates this summer. They will receive an average of $132 per family.
Nationwide, about 8.5 million people are owed a combined $500 million in rebates. The average per family is a bit lower than in Florida, at $100.
Florida health plans might have overcharged some customers on premiums, but they’ll have to give the money back.
“This new standard is increasing transparency and accountability, promoting better business practices and competition among insurance companies, and ensuring consumers receive value for their premium dollars,” HHS Secretary Kathleen Sebelius stated in a news release. “Today’s announcement shows that more Floridians are benefiting from the tools created under the Affordable Care Act to keep consumer costs down.”
Source: South Florida Businees Journal
This information is intended to be
educational and should not be considered legal advice on any specific matter.
