New York Health Insurers to Refund $114.5M to Policyholders

New York Gov. Andrew Cuomo announced Wednesday that more than half a million people will receive refunds from insurance companies that overcharged them for medical services in 2010, according to a Democrat and Chronicle report.

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The insurance companies must return $114.5 million to 573,748 people overcharged for their health insurance premiums after the companies failed to meet the requirements of a state law. The law requires insurers to spend 82 cents of every dollar on medical care. If insurers do not meet the ratio, the difference in money is returned to the policyholders.

According to the report, approximately $44.7 million of the refunds will go to large companies. Those working for small companies will receive around $25 million, and individuals who bought insurance themselves will receive around $27.2 million.

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