Consumers in ERC states receiving $70 million in ACA premium rebates

Over $70 million in 2014 insurance premium rebates will soon be going back to consumers and employers across the CSG/ERC region. Since 2011, under the Affordable Care Act, insurers are required to spend at least 80% of individual and small group insurance premiums on medical care or activities that improve health. Large group insurers must spend at least 85% of premiums on health care and activities. Under the law, insurers that do not meet this standard must rebate excess administrative costs to consumers. Over $2.4 billion has been returned to US consumers since 2011. Rebates come either directly to consumers or to their employers to benefit employees. Since 2011 the percent of compliant, fairly priced coverage has increased every year, necessitating fewer rebates. Among ERC states, residents of Maryland will receive both the largest total and average rebates for 2014. No residents of Rhode Island or Vermont will receive rebates as all insurance plans sold there last year complied with the standard.