More than 614,000 Floridians will soon be getting a rebate from their health-insurance company.
“For consumers, some people will be getting money back,” said Ken Stevenson.
Under the Affordable Care Act, also known as Obamacare, insurance companies aren’t allowed to overcharge consumers. The companies must spend 80 cents for every dollar collected on patient care. The other 20 cents goes for administrative costs. When a company doesn’t spend enough on care, they must refund the consumer.
“It just depends on the carrier and if they’re operating in the parameters that were set in the Affordable Care Act,” said Stevenson.
“Floridians will be receiving 54 million dollars in rebates from their heath insures. That’s an average of 132 dollars per family.
“It will vary company to company,” said Sam Miller.
Insurance Regulators say rates have increased in individual markets as a result of the federal health care reform.
In a statement, the Florida Office of Insurance Regulation says: “The office believes that whatever savings that may be realized as a result of the medical loss ratio rebates will be short-lived.”
“What happens down the road remains to be seen. These savings are based on how much the insurance companies need to spend in claims,” said Miller.
Consumers should have their rebates by August 1st.
More than 77 million consumers have saved 3.4 billion dollars up front on their premiums as private companies are being forced to become more efficient.