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