State orders health plans to refund $114.5 M in overcharges
Posted November, 10 2011 by arianne
Hooray for our tax dollars at work! Governor Cuomo announced yesterday that 11 of New York’s insurance plans would have to pay back $114.5 million to 573,748 New Yorkers who were overcharged for health insurance premiums based on a legal requirement that says that they have to spend at least 82 cents of every dollar on medical care versus “administrative” costs like t.v. ads and xerox machines (or corporate jets?).
Turns out these 11 plans did not meet that requirement and so have to pay back what they owe to their customers. Biggest offenders? Empire Blue Cross Blue Shield owes he most, at more than $61 million. Excellus Blue Cross Blue Shield owes more than $21 million. Aetna Health has a tab of $11.5 million and MVP Health Plan will be giving back $1.3 million.
Refunds should start going out by December 15th, though its not clear yet how much each individual person will get. But, man, what a great way to end the week! And kudos to the Department of Financial Services for sticking up for us little guys.
To read more on this issue, here are some links from around the web:
- “Governor Cuomo Announces Refund of $114.5 Million in Health Insurance Overcharges to Consumers and Businesses” Governor’s Press Release
- “New York Orders 11 Insurers to Refund Money for Overcharges,” Bloomberg Businessweek
- “State: Health insurers to refund $114.5M in overcharges to consumers,” Democrat & Chronicle
Citizen Action of New York – Health Plans to Refund $114.5 Million in Overcharges • Nov.11.2011 at 03:44:pm
[…] Wednesday, Governor Cuomo announced that he was ordering 11 health insurance companies to refund $114.5 million to policy hold… who were overcharged for their health insurance premiums in 2010. State regulations require that […]