‘Obamacare’ Brings $29.5 Million in TN Health Insurance Rebates

Thousands of Tennesseans can expect a check from their health insurance company in August as insurers comply with a provision of the still-controversial and still-undecided Affordable Care Act, according to the Commercial Appeal.
Insurers in Tennessee will pay around $29.5 million in rebates this year to 223,583 Tennesseans, according to the Kaiser Family Foundation, to meet a spending threshold set by the health reform law. The threshold, called the medical loss ratio, was set to require insurance companies to spend a minimum of 80 percent of their premiums on health care, not on other business costs like executive pay or marketing.
The rebates bridge the gap of what the companies actually paid for health care in 2011 and the 80 percent threshold. Insurers must report the amounts of these rebate payments to the government today.
The majority of the Tennessee rebates — about $22.3 million — will go to 134,629 with individual policies, the Kaiser study said. About $4.4 million will go back to 65,908 insured with small groups, like small businesses.
About $2.8 million will be refunded to 23,046 insured in large groups.
BlueCross BlueShield of Tennessee, the state’s largest insurer, announced Thursday it will pay $8.6 million to about 73,000 individual policyholders in August. The insurer reported the figures a day ahead of the federal deadline.


Note: More on the BlueCross rebates HERE.

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