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Insurers Owe $2,600 In Refunds In South Dakota

July 24, 2014, 11:37 AM

Insurers Owe $2,600 In Refunds In South Dakota

The federal government says insurers owe South Dakota customers about $2,600 in refunds because of a provision in the nation's health care law.

The Health and Human Services Department released figures Thursday showing that 867 Dakotans will be getting refunds, averaging $5 per family.

The Affordable Care Act requires insurance companies to spend at least 80 percent of the premiums they collect on patient care and quality improvement or return the difference to consumers and employers.

Employers can apply refunds in ways that benefit workers or take a discount on future premiums. Individual policyholders owed refunds will get checks, reimbursements to their credit card accounts or see reductions in future premiums.

Refunds nationwide total more than $332 million, with an average of $80 per family.

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