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Floridians set to receive rebates on health insurance premiums

Thu Jun 27th, 2013 on     Insurance Law,    

To some, particularly citizens in the state of Florida, the Affordable Care Act seems to be working. Federal officials have mandated various insurance companies provide health insurance rebates to insured individuals-millions of dollars in fact. But why?

Under the new healthcare law, insurance companies are required to spend a minimum of 80 cents for every dollar received in premiums on patient care. So, insurers who previously spent a majority of their revenues derived from premiums on marketing or executive salaries are now prohibited. And, if they do, they must reimburse those they cover in the form of rebates.

This is what’s happening to many Floridians. The federal government recently announced that 614,000 Floridians will receive a health insurance rebate totaling $54 million, or about $132 per family from assorted insurance companies. Floridians will receive the rebate via a check in the mail or a reduction in premiums. Along with the compensation, citizens will also receive an itemization from the insurance carrier how much they failed to spend on patient care as mandated under Obamacare.

Floridians aren’t the only ones expected to get money back. Approximately 77.8 individuals across the nation will receive $500 million in rebates.

Source: Sun Sentinel, Florida consumers to get $54 million in health-insurance rebates, William E. Gibson, June 20, 2013

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