Utahns to Receive Health Insurance Rebates
U.S. Health and Human Services Secretary Kathleen Sebelius announced Thursday that about 140,000 Utahns will be receiving a rebate this year from their health insurance company. Utah residents will benefit from more than 4.5 million dollars in rebates from insurance companies this summer, averaging 85 dollars per family.
The rebates are a result of the federal Affordable Care Act’s Medical Loss Ratio Standard known as the 80/20 rule. It requires insurers to spend at least 80 cents of every premium dollar on patient care and quality improvement. If they spend an excessive amount on profits and red tape, they owe rebates back for the difference. Insurance companies that do not meet the 80/20 standard will send consumers a notice that they are eligible for the rebate by August 1st.