Nearly 114K Michigan families to get health insurance rebate [Detroit Free Press]

June 21--Nearly 114,000 Michigan families who buy their own health insurance or who have workplace coverage at small businesses will receive an average rebate of $214 no later than August 1 if their health insurer spent too much on administration and salaries, the nation's top health official announced today.

-- PDF: Report breaks down rebates by state

In Michigan, 10 insurers will have to pay rebates, including the large Aetna and Humana health plans. The amount of rebates they owe was not immediately available.

The information about health plan spending and rebates will be posted "in coming weeks" at www.healthcare.gov, said Mike Hash, director of the Office of Health Reform for the department.

Michigan families who buy their own individual plans will see a $205 average rebate, according to data released today by the U.S. Health and Human Services Secretary Kathleen Sebelius in Washington, D.C.

Families insured by small businesses will get a $293 average rebate. Those insured by large businesses won't get a rebate, according to the data.

Nation-wide, 12.8 million Americans will get an average $151 rebate through the $1.1 billion in rebates insurers must pay through a provision of the Affordable Care Act.

The two-year-old law requires insurers to spend at least 80 percent of the money they collect from consumers for monthly premiums be spent on medical care and quality improvements. It's known as the 80-20 rule.

Consumers in individual and workplace plans owed rebates will get them one of several ways:

A check in the mail.

A reimbursement into the account they use to pay premiums by credit or debit cards.

A reduction in future premiums.

Rebates in some states were much higher. For example, average rebates will be $807 in Vermont; $777 in Oregon; and $503 in Indiana.

An HHS media statement said that 62% of consumer insured in the individual market, 83% in the small business market and 89% in the large business market met the 80-20 rule that limited their administrative spending to accepted amounts.

Contact Patricia Anstett: 313-222-5021 or panstett@freepress.com

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