Nearly 60,000 Kansans will receive more than $3.6 million in reimbursements from their insurance companies under a provision of the Affordable Care Act, the U.S. Department of Health and Human Services has announced.
Under the 2010 law often known as Obamacare, insurance companies are required to spend at least 80 percent of premium dollars on patient care and quality improvement. If insurers direct more than 20 percent of that money toward profits and administration, they have to reimburse it to consumers.
"The 80-20 rule is bringing transparency and competition to the insurance market, ensuring that consumers are continuing to receive value for their premium dollars," Sylvia Burwell, U.S. health and human services secretary, said in a statement. "Standards like these created under the health care law are providing Kansans with immediate savings and are helping to keep costs down over the long term."
The 59,966 Kansans who bought insurance on individual or small group markets in 2013 will receive the reimbursement either through a refund check in the mail; lump-sum reimbursement to the credit or debit card account they used to pay their premium; a reduction in future premiums; or their employer reinvesting the money in their health coverage.