Over 235,000 Arizona families will be getting a check for about $120 this summer thanks to the Affordable Care Act’s 80/20 rule.
The 80/20 rule requires insurance companies to spend at least 80 percent of consumers’ premium dollars on medical care. If they don’t, they have to reimburse the difference.
“The Affordable Care Act requires insurance companies to spend 80 percent of what it receives in the way of premiums for actual claim,” said Arizona State University law professor James G. Hodge Jr. “When you have a situation where an insurance company is charged more in premiums than it is disbursed in claims, the [act] requires a refund.”
The rule also states how much of consumers’s claims can be used by insurance companies on non-health care costs. Hodges said the rebates could continue on for years.
“You will see a lot of insurance companies — if this provision stays in place following the Supreme Court’s review — making these adjustments so they don’t have to engage in this type of systemic refund across a large pool,” he said. “Ultimately, it could be an annual reimbursement made to consumers.”
Insurance companies are required to provide the rebates no later than Aug. 1.
- Locals helping locals: 6 success stories you need to know about
- Sunscreen facts that could save your life
- 6 energy saving hacks for your home
- 5 tips for choosing a company to end your timeshare
- Water tips to save money, help save the Earth
- 5 of the most adored gentlemen in professional sports today
- The real danger of sitting at your desk
- Most surprising NBA playoff performances of the last 40 years
- 11 classic baseball movies you must see again
- Finally getting rid of fat: 3 methods that actually work
- 4 reasons cancer survivors should focus on food
- 5 spring cleaning spots everyone forgets
- 5 reasons to look forward to watching the D-backs this season
- Common virus attributed to spike in head and neck cancers
- 5 signs it’s time to end your timeshare ownership
- 3 most overlooked ways to keep your home healthy
- 6 ways the air in your home could be making you sick
- CrossFit dangers: 5 common injuries and how to deal with them
- Today's radiation treatments offer better success, fewer side effects
- Tips to make watching TV on the patio even better
- What really happens when you donate to a community college?
- Sun and skin cancer: Separating fact from fiction
- 5 critical lifestyle changes for a healthy colon
- What you need to know about Alzheimer's disease in Arizona
- Spring clean your windows like a pro with these 8 tips
- 7 films that should have won best-picture Oscars
- New plumbing technology saves money and improves your home
- Survey shows Arizona CFOs optimistic about 2016
- How chronic pain can affect your love life
- 5 potential warning signs about your child's development