Health Insurers to Rebate SC Consumers $6.2 Million

Health insurers will reimburse more than 119,000 South Carolinians a total of $6.2 million, according to the US Department of Health and Human Services.

That averages out to about $70 per family, according to a GSA Business report.

The rebates will be paid by insurers who failed to spend enough premium dollars on patient care as required by the Obamacare 80/20 rule.

Insurers must spend at least 80 cents of every premium dollar on patient care and quality improvement, an HHS statement said. If they spend more on other expenses like profits, marketing and salaries, they owe the rebates back to consumers.

The rebates may be repaid in any number of ways, including checks, reimbursements to credit/debit accounts, or future premium reductions.

Consumers who are owed rebates will be contacted by their insurers.

HHS said insurance companies operated more efficiently last year than in 2011 nationally, saving consumers more than $3.4 billion in premiums. In South Carolina, rebates totaled $19.6 million in 2012 and the average refund was $131.

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