The state of New York has ordered 11 insurance companies to refund $114.5 million to more than 573,000 policyholders in the state who were overcharged for health premiums in 2010, according to a news release from the office of New York Gov. Andrew Cuomo.
New York state law requires health insurers to spend 82 percent of health premiums on medical care. If a health insurer spends less than 82 percent, it is required to refund the difference to its policyholders.
Empire Blue Cross Blue Shield will be required to pay more than $61 million back to its policyholders, the most of any of the listed health insurers. Other insurers forced to make refunds include Excellus Blue Cross Blue Shield ($21.4 million), Aetna Health ($11.5 million) and Health Net of New York ($5 million).
"In this economic climate, every penny counts, and in this case, insurance companies were overcharging New Yorkers to the tune of millions of dollars," Gov. Cuomo said in the release. "This should serve as a message to companies that we are watching, and we will not tolerate any action that wrongly hurts the finances of the people of New York."
New York state law requires health insurers to spend 82 percent of health premiums on medical care. If a health insurer spends less than 82 percent, it is required to refund the difference to its policyholders.
Empire Blue Cross Blue Shield will be required to pay more than $61 million back to its policyholders, the most of any of the listed health insurers. Other insurers forced to make refunds include Excellus Blue Cross Blue Shield ($21.4 million), Aetna Health ($11.5 million) and Health Net of New York ($5 million).
"In this economic climate, every penny counts, and in this case, insurance companies were overcharging New Yorkers to the tune of millions of dollars," Gov. Cuomo said in the release. "This should serve as a message to companies that we are watching, and we will not tolerate any action that wrongly hurts the finances of the people of New York."
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