Florida insurance companies must refund $107 million to customers – Insurance News Net

13September 2019

Orlando Sentinel (FL)

< meta itemprop ="heading"content ="Florida insurance companies must

refund$ 107 million to customers”/ > Sep. 13– The premiums that some personal insurance companies charged over the past three years were too high, so now they will need to return a few of that money– an overall of$1.3 billion– to their customers, according to

a brand-new analysis by the Kaiser Household Structure. Florida insurance companies, including health and life insurance business, are paying$107 million in rebates. Practically$21 countless the total is being reimbursed to people and the rest to companies that have little and large group strategies. The refunds are the outcome of a measure put into location under the Affordable Care Act to restrict insurance companies'earnings. Called medical loss ratio, that formula needs personal insurance provider to invest a minimum of 80 % of their revenues from premiums on claims and quality enhancement. They can use the other 20 % for earnings, marketing and administration. The formula uses to

personal health and life insurance business, whether or not they offer Obamacare strategies. Ad “When the ACA initially entered into result in 2014, insurance companies had a lot of problem finding out how to price these strategies … and a lot of them lost a lot of money,”said Rachel Fehr, a research assistant and among the report’s authors at the Kaiser Household Structure. “However in 2015 is when they started to materialize revenues and in a lot of cases they were actually more lucrative than they ever were before the ACA entered into result, so they need to return a few of these revenues to consumers in the form of these rebates.”

The majority of the refunds in Florida are paid by the state’s largest insurer, GuideWell, the moms and dad business of Florida Blue and Health Options.

The business is refunding almost $90 million, $14.6 countless which is going to individuals with Florida Blue private strategies.

“We started processing checks for distribution in early August. The typical quantity per recipient is $33,” said Christie Hyde DeNave, a spokeswoman for Florida Blue, describing rebates to people.

She said the rebates are “proof of our commitment to address the overall price of health care for our members.”

Other insurance companies releasing rebates in Florida– to people and companies– include United States Life Insurance Business in the City of New York, Connecticut General Life Insurance Business, Aetna Life Insurance Business, Aetna Health Inc Florida, Dependence Standard Life Insurance Business and UnitedHealthCare, according to the Kaiser Household Structure.

Insurers can release the rebates in the form of a check to consumers or as a credit used to the premiums. For individuals with employer coverage, the rebate may be shared between the employer and worker, according to the analysis.

By law, the insurance companies must begin releasing the rebates to eligible members by the end of this month.

The rebates don’t use to all customers.

Florida insurance provider provided the third-largest quantity of rebates behind Virginia and Pennsylvania, which are paying t $150 million and $130 million respectively. In 13 states insurance companies don’t need to release any refunds.

This is not the first time insurance companies are providing refunds to their customers, although it’s the largest quantity since 2012. In 2015, they reimbursed more than $700 million.

The analysis found that countless dollars in rebates from previous years have actually gone unclaimed, including $37.5 million by individuals who had private strategies.

Experts expect that insurance companies will continue to owe large rebates next year.

nmiller@orlandosentinel.com!.?.!. ___(c)2019 The Orlando Sentinel(Orlando

, Fla.)See The Orlando Sentinel(Orlando, Fla.)at www.OrlandoSentinel.com Distributed by Tribune Material Firm, LLC. Source: insurancenewsnet.com

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