This year’s average refund will come to $92 per family as a result of the Affordable Care Act.
The announcement has now been made that over $21 million in rebates from the health care reform will now be sent out to residents of the Carolinas, as insurance companies refund customers after having spent too many of their premium dollars on red tape and profits, as opposed to paying for actual claims, last year.
This figure for the states was recently released by the U.S. Department of Health and Human services.
The department said that the regulations from the health care reform will mean that in South Carolina, there will be 205,000 customers who will be receiving over $13 million in rebates, with an average refund of $92 per family. On the other hand, in North Carolina, there will be over 182,000 customers who will be receiving their portion of a total of $8 million in rebates, which will work out to about $77 per family.
Across the country, there will be about 7 million people receiving these refunds from the health care reform law.
The national average will be about $80 per family from a total of approximately $330 million in refunds. This is the third consecutive year in which the refunds have been sent out as a result of the Affordable Care Act. They are being issued because of the Medical Loss Ratio Rule, which is also known as the 80/20 rule, because it requires that 80 percent of premium dollars be spent on “patient care and quality improvement activities”, and only 20 percent be spent on everything else.
When health insurance companies spend too much of the premium dollars on red tape and profits, then they are required to refund their customers. According to a report from the HHS, during 2013 alone, this saved consumers in the United States an estimated $3.8 billion on their premiums, right off the top, because of the improved efficiency of their insurer operations.
Those who are entitled to actually receive one of these health care reform based refunds will obtain it in one of a number of ways. It could come as a check that they will receive in the mail, a reimbursement into their account with the insurer that will be used against future premium payments, or consumers could receive a reduction in their monthly premiums until the amount is paid off.