The rebates will be sent out to families in checks averaging $139 per family.
This summer the Ohio health insurance rebates will be sending over 81,000 families throughout the state a total of $11.3 million.
These refunds are a part of a nationwide repayment of $1.1 billion.
On average, the rebate checks that will be received will be $139 for individuals and families with Ohio health insurance. However, some of the 81,500 families who will be receiving the payments will receive much more than that. In fact, the larger payments are hundreds of dollars higher than the average.
This summer’s Ohio health insurance refunds are a result of the Affordable Care Act.
According to data from the U.S. Department of Health and Human Services, these healthcare reforms have stated that insurers across the country must send out rebates totaling $1.1 billion, which will be received by almost 12.8 million Americans in 2012.
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The healthcare law says that insurers must spend 80 or 85 percent of the money they collect in premiums on care improvements or medical care costs. The remaining 15 or 20 percent of the collected money is allowed to cover other expenses such as marketing, administrative costs, salaries, or profits. Any amount beyond that must be returned to the policyholders.
According to several insurers, this is making it challenging to make predictions regarding how much care will cost. Kim Ashley, a spokesperson for Anthem Blue Cross and Blue Shield, has stated that in 2011, individual customers didn’t use as many medical care services as had been predicted. The rebate that is being issued to its customers is only about 0.1 percent of all of the collected premiums by that insurer last year. Ashley said that “It’s a very small percentage.”
Ohio health insurance companies – as with all states – must disclose their numbers for rebate calculations.
The data must be sent to Health and Human Services, which will then decide whether or not the insurer must send refunds to its customers, and how much those refunds will be. The hope of many is that this is setting a new standard for Ohio health insurance, and that consumers will benefit when insurers meet it.