54,290 Nevadans to Receive Rebates from Health Insurance Companies
July 24, 2012
CARSON CITY – Some consumers in Nevada can soon expect to receive rebates from their health insurance companies.
A provision of the federal Affordable Care Act requires that health insurance companies spend a certain percent of a consumer’s premium dollars on medical care and quality improvement. This is called a medical loss ratio. Those companies that didn’t meet the medical loss ratio standard in 2011 will be required to provide rebates to their policyholders no later than August 1.
Rebates will be issued to 54,290 Nevadans.
While the amount of each rebate will vary and depends on the premiums paid by the consumer, the average rebate will be about $96 per person, equal to $5.75 dollars a month for the previous plan year. The average health insurance premium paid in 2011 was about $4,200 per person per year, or $350 per month.
"Our health insurance market is a competitive marketplace, with 40 active carriers. Premiums consumers pay are competitively priced, and that is evidenced by the relatively low amount of rebates, $5.2 million in rebates compared to $2 billion in total premiums,” said Insurance Commissioner Scott J. Kipper. “The Nevada Division of Insurance continues to monitor the markets to ensure our carriers comply with Nevada's premium pricing statutes. This ensures that our consumers get the best value for their premium dollars."
The six companies that will be issuing rebates are:
Aetna in the individual and small group markets.
Anthem HMO in the large group market.
Anthem PPO in the small group market.
CIGNA in the large group market.
Humana in the individual market.
Trustmark in the small group market.
The amount of each rebate will vary and depends on the premiums paid by the consumer. Health insurance companies may issue rebates in one of the following ways:
A rebate check in the mail.
A lump-sum reimbursement to the same account used to pay the premium if it was paid by credit card or debit card.
A reduction in future premiums.
To the employer, who may provide one of the above to the employee, or apply the rebate in a manner that benefits its employees.