FRANKFORT — About 134,000 Kentucky families are expected to get money back from their insurance companies this summer as a result of the Patient Protection and Affordable Care Act, federal officials announced Thursday.
The families, which comprise about 249,000 individuals, will receive a total of $15.3 million in rebates from insurance companies, according to the Centers for Medicare and Medicaid Services.
The average rebate for a family will be $114.
As part of the controversial 2010 health insurance overhaul pushed by President Barack Obama, insurance companies must spend 80 percent of all premiums they collect to pay claims or improve health outcomes. The remaining 20 percent may be spent on administrative costs, such as salaries and advertising.
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Many insurance companies met the standard, but those that spent less than 80 percent of premiums on medical care must return money to consumers by Aug. 1. How much each Kentuckian is owed depends on the individual insurance policy, according to insurance officials.
The announcement of the rebate comes as the U.S. Supreme Court deliberates whether the Patient Protection and Affordable Care Act is constitutional. A decision is expected any day.
Insurance companies will be sending customers letters soon notifying them if the company has met the 80/20 rule and, if not, how much their rebates will be.
The rebates could include a check, a reduction in future premiums or credit on a debit or credit card used to pay insurance premiums, according to the Centers for Medicare and Medicaid Services.