Health Insurance Premium Rebates Headed to Californians

Nearly two million Californians should receive a health insurance premium rebate this week. The rebates are the result of the federal Affordable Care Act.
The federal law requires health insurers to spend at least 80percent of their premium money on actual health costs, rather than marketing and other non-medical expenses.
Insurers who don't meet that percentage are required to issue refunds.

California Insurance Commissioner Dave Jones says premium rebates total about $74 million, or about $65 per family.
"Individuals and families will in some cases receive significantly more in some cases significantly less, it really depends on the extent to which their health insurer failed to miss the mark and for how many policyholders did they fail to meet the mark," Jones told Capital Public Radio.
Jones says his department also plans to audit health insurers to make sure they're complying with the law.
The Department of Managed Health Care oversees two insurers also issuing rebates. United Health Care and Anthem Blue Cross are refunding a total of $42 million to HMO policyholders.
That average refund will be about $200.

Rebate breakdown by health insurers regulated by the California Department of Insurance (CDI):

— Blue Shield of California Life & Health Insurance Company: $10.8 million rebate to policyholders in the individual market; approximately 239,595 subscribers impacted; $45.15 average rebate per subscriber;

— Kaiser Permanente Insurance Company: $277,034 rebate to policyholders in the individual market; approximately 21,823 subscribers impacted; $12.69 average rebate per subscriber;

— Connecticut General Life Insurance Company (CIGNA):$3.4 million rebate to employers in the large group market; approximately 89,575 subscribers impacted; $37.70 average rebate per subscriber;

— Anthem Blue Cross Life and Health Insurance Company: $1.3 million rebate to policyholders in the individual market; approximately 407,429 subscribers impacted; $3.16 average rebate per subscriber;

— Aetna Life Insurance Company: $3.4 million rebate to employers in the large group market; approximately 84,428 subscribers impacted; $40.50 average rebate per subscriber;

— PacifiCare Life and Health Insurance Company: $789,615 rebate to employers in the large group market; approximately 63,600 subscribers impacted; $12.42 average rebate per subscriber.

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