Around 340,000 Michigan consumers who purchase their own health insurance could receive a total of $89 million in rebates over the next three years, after federal health regulators ruled that Michigan will not be exempt from federal health reform requirements, according to a Detroit Free Press report.
Starting in Jan. 2012, insurance companies selling individual plans must spend at least 80 percent of the money made from monthly premiums on medical care, with no more than 20 percent going to profits or administrative costs. By August, insurers that do not meet the 80 percent requirement will have to give consumers a rebate or future credit on monthly health premiums.
Rep. Mike Rogers (R-Brighton) opposed the mandated ratio, saying the failure to grant the exemption for Michigan would force smaller insurers to leave the state, creating job losses. Dozens of companies sell individual insurance plans in Michigan, six of which currently meet the 80-20 rule.
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Starting in Jan. 2012, insurance companies selling individual plans must spend at least 80 percent of the money made from monthly premiums on medical care, with no more than 20 percent going to profits or administrative costs. By August, insurers that do not meet the 80 percent requirement will have to give consumers a rebate or future credit on monthly health premiums.
Rep. Mike Rogers (R-Brighton) opposed the mandated ratio, saying the failure to grant the exemption for Michigan would force smaller insurers to leave the state, creating job losses. Dozens of companies sell individual insurance plans in Michigan, six of which currently meet the 80-20 rule.
Related Articles on Coding, Billing and Collections:
Pressure on Federal Health Insurance Exchange Increases as States Shun Responsibility
CMS Loosens 5010 Standards Compliance
HHS Study: Medicare Contractors Often Pay Claims Using Expired ID Numbers