$1.1 million will be kicked back to 16,000 Idaho families from insurance companies this summer, because the carriers need to comply with the new 80/20 rule, a part of the Affordable Care Act.
The health care reforms require insurance companies to spend at least 80 percent of consumer's premium dollars on either medical care and quality improvement, while spending no more than 20 percent on administrative costs, such as salaries, sales and advertising. Beginning this year, carriers are required to notify customers how their premiums are allocated, and if the companies didn't meet the 80/20 standards, they're required to rebate the difference no later than Wednesday, Aug. 1.
Idahoans owed a rebate will see their rebates either in the form of a check, a reduction in future premiums or through a benefit from an employer who may be providing the benefit. The average rebate is expected to amount to $70. In Idaho's individual market, the average rebate per family is expected to be $323. In the small group market, the rebate per family is expected to be $63.