RALEIGH, N.C. (AP) — Nearly 193,000 North Carolina customers will get rebates averaging $87 this summer because their health insurance company could not keep overhead costs down, the U.S. Health and Human Services Department said Thursday.
The money goes to consumers whose health insurer failed in 2012 to meet a benchmark requiring that at least 80 percent of each premium dollar go toward medical services. The benchmark was established to control the amount used by the companies to pay for overhead and bonuses.
Insurers are required by the federal health overhaul law to limit profits, salaries, and other administrative costs to no more than 20 percent of premiums. Those that do not must rebate their customers either with a check in the mail, a reimbursement to their credit or debit card, or premium reduction.
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