SC health insurance providers to issue over $13 million in refunds
CHARLESTON, SC (WCSC) - Some South Carolinians will benefit from more than $13 million in health insurance refunds due to the Affordable Care Act.
Health and Human Services officials say 205,229 people in the Palmetto State will split $13,187,815 in refunds from insurance companies this summer. The totals come out to an average of $92 per family.
The refund comes from the 80/20 rule, also known as the Medical Loss Ratio (MLR) rule, which requires insurers to spend at least 80 percent of premium dollars on patient care and quality improvement activities. If insures instead opt to spend more than the required amount on profits and red tape, they are required to issue a refund to their consumers.
Consumers who are set to receive a refund will get with either by a check in the mail, a lump-sum reimbursement to the account used to pay their premium, or a reduction in future premiums. Employers can also use the refunds to improve their health coverage.
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