According to the U.S. Department of Health and Human Services (HHS), 11 health insurers owe 90,485 Pennsylvanians refunds totaling $5,198,874 as a result of Obamacare’s medical loss ratio rule.
The regulation requires insurers to spend at least 80 percent of premium dollars on patient care and quality improvement. This requirement is 85 percent for insurers selling large-group policies covering more than 50 employees.
The refunds average $75 per family. Pennsylvanians who are owed refunds will get either a refund check in the mail, see a lump-sum reimbursement to the same account they used to pay the premium if paid by credit or debit card, see a reduction in the future premium, or have their employer use the refunds to improve their health care coverage.
Nationwide, 6.8 million consumers will receive more than $330 million in refunds this year.
Pennsylvania insurers who owe refunds for 2013 include Aetna Life Insurance Company, Everence Insurance Company, Freedom Life Insurance Company of America, Golden Rule Insurance Company, John Alden Life Insurance Company, Mid-West National Life Insurance Company of Tennessee, Monumental Life Insurance Company, National Foundation Life Insurance Company, The MEGA Life and Health Insurance Company Time Insurance Company, and Trustmark Life Insurance Company.