R.I. will not receive insurance rebates

(WPRI) - Millions of Americans will soon get a rebate check from their health insurance providers, but not Rhode Islanders.

Even though rebate checks won’t be heading to the Ocean State, that’s not a bad thing.

Over the next few months, health insurance companies will give back billions of dollars to their customers. While it might seem like the rest of the country is cashing in on a deal, they were really just overcharged.

According to Patrick Tigue, a Senior Analyst from Rhode Island’s Department of Business Regulation, the insurance rebate is like getting a tax refund. “While it’s nice to get that big check at the end of the tax season, it only means you were paying too much,” he says.

The rebates are the result of a 2010 health care reform law provision that punishes insurers who spend too much of their premiums to boost company profits. Under the terms of the provisions, if an insurer’s medical costs were less than 80% of their premiums, it is considered excessive and consumers are entitled to rebates.

In Rhode Island, consumers are paying the appropriate amount for insurance already. However, Massachusetts residents will see an average of $200 back from their insurance providers.

New Mexico is the only other state that will not be receiving rebate checks.