Federal health officials say insurance companies will give rebates to Arizona customers this summer, as part of a provision in the Affordable Care Act.
Nearly half a million Arizona residents will receive a total of from $18 million from insurance companies this summer. The average family receiving a rebate will get about $71, said David Sayen, the regional administrator for Medicare and Medicaid.
Not everyone will see a rebate, because the money is coming only from insurance companies that did not meet the federal goals for patient spending, he said.
The Affordable Care Act requires insurance companies to spend at least 80 percent of their income on patient care and quality improvement. If they don’t spend that much on patients, they must rebate the difference back to policy holders, Sayen said.
It helps customers ensure their company isn't spending the money on other things, he said.
“They can be confident that 80 cents of every dollar is going to be spent on actual medical care and not unnecessary things like trips to sporting events, profit and whatever else the company might do with the money.”
In order to reach that spending threshold, Sayen said insurance companies have lowered prices on some plans or improved coverage.