New York Health Insurers to Refund Millions to Policy Holders

As part of implementing federal health reform, New York State has adopted a law requiring insurance plans in the small group markets to spend 82 cents of every premium dollar received on medical services, and plans in the large group market to spend 85 cents of every premium dollar received.  Insurers that do not meet these thresholds must refund the difference between the amount they are required to spend on medical care and what they actually spent to policy holders.  As a result of this law, 11 health insurers in New York State (including Excellus, Blue Cross and Blue Shield, Healthnet, and Aetna) will refund $114.5 million in premiums to New York State policy holders this year.