Millions Returned to Pennsylvania Residentsfrom Insurance Companies

More than 90,000 consumers in Pennsylvania will get a little gift from their health insurance company this year. Eleven insurers will be returning $5.1 million to Pennsylvania consumers under a rule in the Affordable Care Act that gives insurers an incentive to spend at least 80 percent of their premium revenues on patient care or quality initiatives.

Companies that spend more than 20 percent on overhead and profit have to return the difference to consumers. According to a report released today by the U.S. Department of Health and Human Services, an average of $75 will be returned to Pennsylvania consumers who were covered by one of the 11 firms under the so-called "80/20" rule.

The bulk of the $5.1 million to be returned will come from three companies: The Golden Rule Insurance Co., which will return $1.6 million; Time Insurance Co., $1.5 million; and Aetna Life Insurance Co., $825,437. Each of those refunds is for consumers who bought individual policies.

“The 80/20 rule is bringing transparency and competition to the insurance market, ensuring that consumers are continuing to receive value for their premium dollars,” said HHS Secretary Sylvia H. Burwell. “Standards like these created under the health care law are providing Pennsylvanians with immediate savings and are helping to keep costs down over the long-term.” Read More