Rebates go towards reducing premiums
It was last year when $2 million in health insurance rebates were paid out to island residents and according to Department of Administration director Benita Manglona, this year GovGuam has received dramatically less - $218,000 to be exact in August.
By KUAM NewsGuam - It was last year when $2 million in health insurance rebates were paid out to island residents and according to Department of Administration director Benita Manglona, this year GovGuam has received dramatically less - $218,000 to be exact in August. She says of that amount, only $56,000 is attributable to GovGuam employees and retirees.
But you shouldn't expect a check as Manglona says federal law allows for the option to refund or apply to the following year's premiums which was done this year. She says because the attributable amount was so minimal, it would actually cost more to actually process a refund and went toward reducing the premiums.
According to news files, under the Affordable Care Act, insurance companies must comply with the 80/20 Medical Loss Ratio, which means they must spend at least $0.80 of every premium dollar on patient care and quality improvement. If more is spent on profits, rebates are issued for the difference.