How much consumers will get for insurers violating the Obamacare ’80/20 rule’

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U.S. Health and Human Services released this data on how much consumers from Illinois and other states are supposed to get because their health insurer spent too much money on administrative costs, according to the rules laid out by the Affordable Care Act.

The ‘Obamacare’ law requires that insurance companies spend 80 to 85 percent of premium dollars on medical care and health care quality improvement, rather than on administrative costs, starting in 2011.  Those who fail to meet this so-called medical loss ratio (described by the White House as the “80/20 rule”) are required to pay the customers for violating the rule.

Among the ways insurers can pay consumers include as a refund check in the mail, a lump sum reimbursement to the same account that the consumer used to pay the premium or a reduction in their future premiums.

In Illinois, consumers will receive $8,387,603 in refunds from insurance companies this summer, averaging $120 per family, the HHS says.

Here’s the breakdown for all the states:

And here’s who is paying in Illinois:


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