The health care provider Blue Shield of California will soon be paying tens of millions of dollars back to its members, the result of a technical error the company made in 2014.
Large health care providers collect money from premiums that individuals, who’ve enrolled in a plan through Covered California, and businesses who provide health care packages to their employees pay.
Under the federal rules of the affordable care act, health care providers like Blue Shield of California have to spend at least 80 percent of that money they collect on medical care for enrollees.
Blue Shield of California only spent 76.8 percent of the money it brought in on its enrollees.
While that 3.2 percent might not seem significant, it equates to about 82 million dollars. Now, Blue Shield of California will be required to pay that money back to its customers through rebates.
If you’ve enrolled in a health care plan through Covered California, you might be among the 454,000 policyholders to receive a rebate check soon. Collectively, the provider will pay more than $61 million to those individuals.
Some 19,000 businesses statewide can expect rebates as well. Blue Shield of California will shell out more than $21 million total to cover those costs.