Health insurers must give rebates to 5,000 Washington residents
Nearly 5,000 Washington residents are getting rebates on their health insurance, courtesy of the new federal health law.
If you bought an individual health plan from an out-of-state company called Time Insurance, then you should be getting money back. The plans are sold under the brand, Assurant Health. The company sells primarily high-deductible health coverage.
Under the new federal health law, the Affordable Care Act, insurance companies selling to individuals are not allowed to spend more than 20% of your premium dollar on overhead or profit. Anything above 20% must be refunded to customers.
The rebates in Washington will average $161 per customer. Just two companies in Washington have to give rebates this year -- Assurant Health to individuals, and United Healthcare owes a rebate to some of its corporate customers (where the limit is 15%). Both are for-profit companies.
Refunds must be sent, or credited, by August first.
However, a ruling from the U.S. Supreme Court next week could end up striking down the requirement that insurance companies spend at least 80% of premiums on medical care.