July 31, 2012

THE WAR ON WASTE:

Cigna must refund $2.3 million to Vermont customers (Alan Panebaker, June 21, 2012, VT Digger)

Cigna, a major health insurer of large businesses in Vermont, is on the hook for more than $2 million that it must return to its customers in the state under a provision of the federal health care law.

According to numbers released Thursday by the U.S. Department of Health and Human Services, 4,636 Vermonters will receive a rebate -- averaging out to $807 per family.

The rebate is required under a section of the federal Affordable Care Act which requires insurance companies to spend at least 80 percent (or 85 percent in the large group market which is generally insurance through large employers) on medical care.

If insurance companies do not meet this requirement, they have to refund the portion of the premium that exceeded the 20 or 15 percent limit on things like administrative expenses.

Posted by at July 31, 2012 6:48 PM
  

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