Florida Insurance Companies Rebate $113 Million

Florida residents that had to buy their health insurance on their own, without the benefit of employer-provided insurance will get something back soon.  Recent changes spawned by the federal health-care reform act mean that these individuals can expect rebates ranging from $143 to $949 sometime in August of 2012.

These changes were specific to the rule that insurance companies were required to spend at least 80%  of received premiums directly on medical costs, versus other unrelated administrative overhead.  The changes mandate than any amount exceeding that 80% be refunded back to the insured individuals.

Over 157,000 Floridians are qualified for the rebates, according to the Florida Sentinel.   Their reporters interviewed Richard Plangin, a policy coordinator with the Florida Public Interest Research Group, who had this to say:

“This is important for consumers, they already pay extremely high prices for health insurance…More money should go for health care costs and less should be siphoned off. It makes our health care system more efficient. It limits excess profits to investors. If some insurance companies can comply and have been for quite some time, why can’t the others? They have to get rid of their excess costs.””

The rebates can be paid with a check or a credit toward next year’s premium. Rebates on group policies go to the employer, which must promise in writing to pass the money to employees or use it to benefit their health coverage.

If you qualify for the rebate, there’s nothing you need to do other than wait for a letter in the mail.  The insurance companies have agreed to notify recipients of the rebate no later than August 1st, 2012.