More than 6,000 Ohioans to get MLR insurance rebates, feds say

The federal Department of Health and Human Services announced this week that 6,333 Ohio families will be given rebates totaling $486,681 from their insurance company because of an ACA provision requiring that no more than 20 percent of premiums can be used for profits, salaries and other administrative costs (Source: “In Ohio, 6,333 to get rebates on health-insurance premiums,” Columbus Dispatch, June 21, 2013).

The average rebate is expected to be $133 per family and are the result of the Medical Loss Ratio provision in the Affordable Care Act, which stipulates that at least 80 percent of premiums be spent on health care costs.

Last year, the first year in which the MLR rule was in effect, 81,000 Ohio families received rebates totaling about $11.3 million.