Thousands of Missourians who have been overcharged by their health insurance companies have started getting millions of dollars in refunds this month. The insurance companies that have spent too much on administrative costs are being forced by the Affordable Care Act to refund more than $60 million to Missouri policy holders.
Regional Director Jay Angoff with the federal department of health and human services says several insurance companies in Missouri spent more than 20 cents for each dollar collected on administrative costs, including executive salaries and other types of overhead.
The refunds are going to almost 600,000 Missourians who, under the Affordable Care Act, overpaid their insurance companies.
Angoff, who was director of the Missouri Department of Insurance when Mel Carnahan was governor, says the refunds also are a reflection of Missouri’s lack of regulation on insurance rates, which he says allows insurance companies to charge as much as they want to charge.