Health insurers owe Arkansas consumers and businesses more than $7.1 million as the payers collected too much in premiums last year than what they spent on medical care, according to the Washington Times.
Here are five things to know:
1. The Affordable Care Act requires plans that cover individuals and small businesses to spend at least 80 percent of the premiums on medical care or other patient health initiatives, as opposed to salaries and administrative expenses.
2. Those plans covering large employers must allocate at least 85 percent of premiums for medical care.
3. Health payer Centene owed rebates based on its medical loss ratio for 2014. Centene spent nearly 75 percent of the $133 million it collected in premiums in 2014 on medical care and related expenses.
4. Throughout the United States, 5.5 million consumers received $470 million in rebates. The average rebate was $129 per family.
5. Other payers forced to pay refunds to consumers in Arkansas include Mid-West National Life Insurance of Tennessee, Humana Insurance and Companion Life Insurance.
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