News Headlines Article

Californians to receive health insurance rebates, but some call it chump change
Los Angeles Daily News

Nearly 500,000 consumers across California will receive a piece of a $12 million refund from health insurance companies this summer as part of a provision under the Affordable Care Act, the U.S. Department of Health and Human Services said Thursday.

Called the 80/20 rule or Medical Loss Ratio Rule the provision requires insurance companies to spend at least 80 percent of premium dollars on patient care and quality improvement. But if insurers spend too much on profits and red tape, consumers are owed a refund. That includes individuals and those covered under group markets.