Published on April 27, 2012 at 12:59 PM
National Journal: $1 Billion Refund Coming From Insurers
Health insurers will have to pay more than $1 billion in refunds to customers this summer because they have exceeded overhead and profit limits imposed by the 2010 health reform law, a new report finds. The report, from the Kaiser Family Foundation, examined data submitted to state insurance commissioners and estimates that the rebates will total $1.3 billion for the 49 states it analyzed. (Data were not available from California) (Sanger-Katz and McCarthy, 4/26).
Marketplace: Health Insurers Make Premium Paybacks
Part of the health care reform law says only a certain percentage of what we pay in premiums can go to things like insurance company profits and administrative costs. Everything else has to be spent on actual health care or we get it back. And in the first year of the program, we're getting back more than a billion dollars (Warner, 4/26).
Bloomberg: Health Insurers' Customer Rebates May Reach $1.3 Billion
UnitedHealth Group Inc. (UNH), WellPoint Inc. (WLP) and other health insurers may have to forfeit to consumers $1.2 billion to $1.3 billion in profits from last year because of changes to U.S. law that limit revenue from premiums. Rebates for exceeding the limits, called medical loss ratio, will amount to about 6 percent of the industry's $21 billion in profits from 2011, said Matthew Borsch, a Goldman Sachs Group Inc. (GS) analyst. For consumers, that translates into rebates of as much as $517 a person, according to the Kaiser Family Foundation (Wayne, 4/26).
This article was reprinted from kaiserhealthnews.org with permission from the Henry J. Kaiser Family Foundation. Kaiser Health News, an editorially independent news service, is a program of the Kaiser Family Foundation, a nonpartisan health care policy research organization unaffiliated with Kaiser Permanente.