In a July 24, 2014 article, Baltimore Business Journal quoted Venable partner Thora Johnson about the $17.2 million that health insurance companies must pay Maryland residents based on what residents paid for their 2013 premiums. The Affordable Care Act requires insurers to spend at least 80 percent of the money they pull from premiums on healthcare services and pay back refunds if they miss that mark.
Nationally, insurers owe $330 million, down from $504 million last year. The fact that insurers must pay back less this year is a sign that the program is working, said Johnson.
“Insurance carriers have gotten closer to this magic 80/20 line,” Johnson said. “There are smaller checks being written.”