Exchange insurers pay $2.4 billion in rebates, annual amount declines, CMS says
The number of consumers in plans that owe refunds decreased from approximately 6.8 million in 2013 to 5.5 million in 2014.
Consumers have received more than $2.4 billion in Affordable Care Act premium rebates since 2011, but the number of people owed refunds by insurers decreased by more than a million this year compared to last, according to a report released Thursday by the Centers for Medicare and Medicaid Services.
The number of consumers in plans that owe refunds decreased from about 6.8 million in 2013 to 5.5 million in 2014, CMS said.
[Also: Open enrollment update: More than 1 million signed up on Healthcare.gov]
The ACA requires health insurance companies to spend at least 80 percent of premium dollars on improving healthcare quality, and not on expenses such as overhead. Insurance companies that fail to meet this standard owe consumers a refund in the form of lower premiums or a check.
For 2014 alone, insurer rebates totaled nearly $470 million -- an average of $129 per family -- due to the Medical Loss Ratio rule, also known as the 80/20 rule. In the large group market, issuers are required to spend at least 85 percent of premium dollars on quality.
Thursday's results show that an increasing number of consumers are in plans in which they are receiving more value for their premium dollars, according to CMS. More than 7 in 10 current marketplace enrollees will be able to find plans for $75 a month in premiums or less, CMS said. Open enrollment runs through January 31, 2016.
Twitter: @SusanJMorse
