Kentucky families will receive $6.2 million in refunds, an average of $43 per family, under a provision of the Affordable Care Act known as the 80/20 rule.
The refunds announced Thursday by the federal government are the result of the rule requiring insurance companies to spend at least 80 percent of the money paid in premiums on patient care. If the companies don’t reach that amount with spending on bonuses or red tape, it must be refunded to their customers.
According to a news release from the federal Department of Health & Human Services, consumers nationwide will receive $330 million.
Four Kentucky health insurance plans will refund money. Anthem Health Plans of Kentucky had by far the largest refund at $4.4 million. Humana Health Plan was at $766,295, Golden Rule Insurance Co., $342,336, and Time Insurance Co., $333,096.
According to the news release, the money will be mailed in checks, returned to the account a customer uses to pay the premium or result in a reduction of future premiums.
If a person receives health insurance through work, the employer is required to improve health coverage but the employee will not receive a refund.