Oregon consumers set to receive $3M in health insurance rebates

Oregon health insurers owe consumers more than $3 million in rebates tied to a provision of the Affordable Care Act.

In all, 49,212 consumers will receive refunds, with the average refund at $101. The refunds are tied to the 'medical loss ratio' or 80/20 rule created by health reform. The rule requires insurers to spend at least 80 percent of premium dollars on patient care.

Three Oregon insurers are issuing the refunds based on 2013 expenditures: Health Net Health Plan of Oregon Inc., LifeWiseHealth Plan of Oregon and The MEGA Life and Health Insurance Company.

Twice as many Oregonians are receiving rebates this year as last, when 22,000 qualified. But the total amount rebated didn't double. Last year, $2.9 million was rebated, just under this year's grand total.

Those due rebates will either receive a check in the mail, a lump-sum reimbursement to the account they used to pay the premium or a reduction in future premiums.

In addition, an employer may provide rebates through one of those means or by applying the rebate in another manner that benefits employees.

Elizabeth Hayes covers health care for the Portland Business Journal.