MEMPHIS, Tenn. (AP) - Officials said that more than 200,000 Tennessee residents are set to receive rebates from their health insurance company this year.
The Commercial Appeal reported that, according to the Kaiser Family Foundation, around $29.5 million in rebates will be paid this year to 223,583 Tennesseans as insurers try to meet a spending threshold set by the Affordable Care Act health reform law.
The threshold was set to require insurance companies to spend a minimum of 80 percent of their premiums on health care, not on other business costs like executive pay or marketing. The rebates bridge the gap of what the companies actually paid for health care in 2011 and the 80 percent threshold, which is also known as the medical loss ratio.
(Copyright 2012 by The Associated Press. All Rights Reserved.)