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Health Insurance Premium Rebates Headed To Californians

Health insurance premium rebates are heading to about 1.9 million California policyholders this week. The rebates are the result of the federal Affordable Care Act.

The law requires insurers to spend 80 percent of their premium dollars on actual health care costs rather than marketing and other nonmedical expenses. Insurers who don’t meet the percentage are required to issue refunds.

California Insurance Commissioner Dave Jones says his department is taking the law a step further by auditing health insurers. “We’re actually inside the companies reviewing their books and making sure that they accounted for the premiums and accounted for medical costs and that the amount of rebates their issuing is in compliance with the law,” said Jones.


The Department of Insurance has issued a detailed breakdown of rebates; the average in California will be about $65 per family.

People with HMO’s under United Health Care and Anthem Blue Cross will also receive rebates.