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Michigan Health Insurers Owe Nearly $13.2M In Refunds

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CBS Detroit (con't)

Affordable Care Act Updates: CBSDetroit.com/ACA

Health News & Information: CBSDetroit.com/Health

LANSING (WWJ/AP) - The federal government says more than 184,000 Michigan health insurance customers will benefit from nearly $13.2 million in refunds because of a provision of the nation’s health care law.

The U.S. Department of Health and Human Services released the figures Thursday.

The law requires insurance companies to spend at least 80 percent of the premiums they collect on medical care and quality improvement or return the difference to consumers and employers.

The money won’t necessarily be a check in the mail. Employers can apply rebates in a way that benefits workers or take a discount on future premiums. Individual policyholders owed a rebate will either get a check, a reimbursement to their credit card account or see a reduction in future premiums.

The biggest violators include Golden Rule Insurance, HealthPlus Insurance and Humana Insurance. The department said the state’s largest health insurers — Blue Cross Blue Shield of Michigan, Health Alliance Plan and Priority Health — were not in violation of the law.

Insurers are required to issue the refunds by August 1. The department said the average refund will be around $118 per family.

TM and © Copyright 2014 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2014 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.

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