Make us your home page
Instagram

Today’s top headlines delivered to you daily.

(View our Privacy Policy)

Floridians to get $42 million in health insurance refunds

More than 981,000 Floridians will get an average refund of $65 from their health insurers this summer because of the Affordable Care Act, federal officials announced today.

The law's so-called "80/20" rule, also called the medical loss ratio, requires insurers in the individual and small group markets to spend at least 80 percent of premium dollars on patient care and such activities as hospital discharge planning and nursing hotlines. Insurers in the large group markets, generally defined as those with more than 100 workers, must spend more on such services, 85 percent.

If insurers put too much toward profits and overhead, they must refund consumers.

Though the refunds are the most tangible effect of the rule, the primary goal is to help keep the costs of premiums in check. That's not an easy savings to calculate, but the federal government estimates that consumers last year saved $3.8 billion in reduced premiums. Premium savings were defined as the amount that consumers would have paid if their insurance company's medical loss ratios had not improved since 2011.

Nationwide, consumers are due about $332 million in refunds, a figure that covers both the individual and group markets, the U.S. Department of Health & Human Services said. Floridians are getting nearly $42 million of that.

"The 80/20 rule is bringing transparency and competition to the insurance market, ensuring that consumers are continuing to receive value for their premium dollars," Secretary Sylvia Burwell said. "Standards like these created under the health care law are providing Floridians with immediate savings and are helping to keep costs down over the long term."

Floridians should have their refunds reflected in one of several ways. Individual policy holders might get their refund checks in the mail. Consumers with job-based coverage might not directly receive their refunds, which go to their employer.

Contact Jodie Tillman at jtillman@tampabay.com or (813) 226-3374. Follow @JTillmanTimes.

Floridians to get $42 million in health insurance refunds 07/24/14 [Last modified: Wednesday, July 23, 2014 7:53pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times

    

Join the discussion: Click to view comments, add yours

Loading...
  1. Lightning takes defenseman Cal Foote with top pick in draft

    Lightning Strikes

    CHICAGO — Former Avalanche defenseman Adam Foote said his son Cal lived in the locker room.

    Cal Foote, second from left, is welcomed to the Lightning by GM Steve Yzerman, far left.
  2. It's Rays' turn to pound Orioles pitching (w/video)

    The Heater

    ST. PETERSBURG - Ah, the fantastic four.

    The Rays smashed the reeling Orioles 15-5 on Friday, scoring a season-high in runs, to climb four games above .500 for the first time since July 1, 2015.

    Rays third baseman Evan Longoria scores on a triple by Logan Morrison during the first inning against the Orioles.
  3. Lightning picks defenseman Cal Foote

    Blogs

    Cal Foote is the son of former Avs defenseman Adam Foote.
  4. Kids today: They don't work summer jobs the way they used to

    Business

    WASHINGTON — It was at Oregon's Timberline Lodge, later known as a setting in the horror movie The Shining, where Patrick Doyle earned his first real paycheck.

    Teens Ben Testa, from left, Hannah Waring and Abby McDonough, and Wegmeyer Farms owner Tyler Wegmeyer walk the strawberry rows at the Hamilton, Va., farm in late May.
  5. Jeb Bush back in the hunt for the Marlins, now opposing Derek Jeter

    Blogs

    Associated Press:

    Former Florida Gov. Jeb Bush has switched sides in pursuit of the Miami Marlins, and he’s trying to beat out former teammate Derek Jeter.