OVER 350,000 eligible Americans have the chance to claim their chunk of a whopping $75million in health insurance rebates as part of a new policy.
The eye-watering payment is being made by five health insurers to people covered by individual and small-employer plans.
Eligible Americans can get a share of a huge $75million payment made by health insurers[/caption]
The huge sum amounts to $24million more in rebates than the amount given to policyholders last year.
The Massachusetts Division of Insurance said last year the total amount was $51million.
The announcement came after the organisation said it negotiated down proposed rate increases from six health insurance firms.
They claimed this move would have policyholders in the state around $54million in health care premiums next year.
Advocates for insurance reform told Newsweek the announcement would be welcomed by families hit by slowing wages and the rising cost of living.
The bombshell rebates will provide direct financial relief for Massachusetts households.
Small employers are also set to benefit at a time when health costs skyrocket faster than inflation.
The US spends more on healthcare per capita than any other country.
Massachusetts has strict regulations on Medical Loss Ratio (MLR) law.
This is a regulatory requirement that obliges health insurance companies to set aside a substantial portion of their premiums on health care provision.
If a firm’s MLR falls below a certain percentage – the insurer will be required to issue rebates to policyholders.
This keeps insurers accountable and increases transparency over how they use the revenue made from premiums.
Massachusetts has some of the strictest MLR laws in the country.
Insurers are required to meet an 88 per cent MLR for individual and small-group plans, according to the state’s Division of Insurance.
Meanwhile, the federal standard is 85 percent.
In Massachusetts, this means that when an insurer falls below this standard for a three-year period, a portion of premium payments must be returned to policyholders.
Law professor Timothy Jost told Newsweek that Massachusetts likely had a “significantly higher” MLR because it was “trying to support consumers”.
The rebates can either be paid directly as a check or made as credit on future premium payments.
The exact amount of cash given to each policyholder depends on the carrier and the premium paid by individual and small group purchasers.
The five state health insurers issuing rebates are Blue Cross and Blue Shield of Massachusetts HMO Blue, Inc., Fallon Community Health Plan, Inc., Harvard Pilgrim Health Care, Inc., Mass General Brigham Health Plan, Inc., and UnitedHealthcare Insurance Company.
Those who have health insurance with five firms could get the cash[/caption]
