RALEIGH (AP) — Nearly 200,000 North Carolina customers are getting rebates averaging almost $90 because their health insurance company could not keep overhead costs down.
The U.S. Health and Human Services Department said Thursday that the money goes to consumers whose health insurer failed in 2012 to meet a benchmark requiring that 80 percent of each premium dollar to go toward medical services and less toward overhead and bonuses.
Insurers are required by the federal health overhaul law to limit profits, salaries, and other administrative costs to no more than 20 percent of premiums. Those that do not must rebate their customers either with a check in the mail, a reimbursement to their credit or debit card, or premium reduction.
This is the first time North Carolina residents will receive the rebates.