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60,000 Kansans to Receive Insurance Refunds

alexmandossian.com

One of the lesser-known parts of the Affordable Care Act is about to put some money back into the pockets of nearly 60,000 Kansas families.  The refunds will total $3.6 million reported Bryan Thompson for Kansas Public Radio.

The average refund in Kansas will be a little less than 90 dollars per family.  The health care law, known to some as Obamacare, requires insurance companies to spend a minimum of 80 per cent of the premium dollars they collect on paying claims and quality improvement activities.  That means no more than 20 per cent can be spent on overhead and profits.  Failure to meet that standard triggers the refunds.  It could come as a check in the mail, or as an account reimbursement if the premium was paid by a credit or debit card.  The refund can also take the form of a reduction in future premiums, or their employer may use the refunds to improve the company’s health insurance coverage. 

In Kansas, Blue Cross and Blue Shield of Kansas City has to pay nearly $1.2 million in refunds.  Golden Rule owes $720,000, and Humana’s refunds will total $688,000.  Half a dozen other companies owe smaller amounts.