N.C. Insurance Companies Pay $10 Million In Rebates
Almost 200,000 North Carolinians will get reimbursed a tiny portion of what they paid in health insurance premiums last year. Insurance companies will pay back an average of $87 per family because of a requirement in the Affordable Care Act.
A major goal of the Affordable Care Act is to bring down the cost of insurance premiums, or at least keep them from rising as quickly.
Gary Cohen is one of the people in charge of rolling out the law. He said one way it's supposed to control costs is this requirement: insurance companies have to spend at least 80 percent of what they get in premiums on actual health care.
"If they spend an excessive amount on profits and red tape, they owe rebates back to consumers," Cohen said on a conference call with reporters.
That's why you may get a check. Cohen said this is the second straight year insurance companies will give rebates.
In North Carolina, they'll be smaller than they were last year because insurers did a better job meeting the requirement. But the rebates still add up to nearly $10 million.
The insurance companies have to mail a check, put the money back on your credit card, or cut your premium by August 1.