Interesting to know that the health insurance industry has to refund money. The medical Loss Ratio Rule is calculated on a state by state basis. My insurer is Aetna Life Insurance Co. In Michigan 2011 spent only 79% of a total of $31,271,526.42 in premium dollars on health care and activities to improve health care quality. If the company does not spend at least 80% of the premiums receives on health care services, such as doctors and hospital bills, and activities to improve health care quality, such as efforts to improve patient safety. No more than 20 percent of premiums may be spent on administrative cost such as salaries, sales. and advertising, This requirement is referred to as the “Medical Loss Ratio” standard of the “80/20 rule”. The 80/.20 rule in the Affordable Care Act is intended to ensure that the consumers get value for their health care dollars. You can learn more about the 80/20 rule and other provisions of the health reform law at: http://www.healthcare.gov/law/features/cost/value-for-premium/index.html
Since it missed the 80% target in Michigan by 1% of premiums it received, Aetna Life Insurance Company must rebate 1% of your health insurance premiums.
I got back $33.45
This just shows the enormous cost of health care. Is health care reform that bad for America?