LITTLE ROCK, Ark. (KTHV)- Some Arkansans could see upwards of $7.7 million in healthcare rebates.
It is part of the healthcare reform law, the Affordable Care Act, which holds health insurance companies accountable to consumers and ensures that families are reimbursed if a portion of premiums are not used for allowable expenditures.
"That's additional savings that we had based on expected cost. We were able to keep that in reserve for years in the future," said Dr. Cal Kellogg of Arkansas BlueCross BlueShield.
For the first time insurance companies must show how much premium dollars are spent on administration, such as salaries and marketing.
Preliminary reports indicate an estimated 115,000 Arkansans could see a refund up to $114 each.
"In Arkansas if you get a rebate it's going to range from $75 to $120," said Dr. Kellogg.
Some people, in some cases employers, could see money as soon as August 1.
"If you raise my premium $2,000, I'm not going to celebrate because I get $80 back. I'd rather my premium never gone up," said Arkansas Republican Representative Tim Griffin.
It is all part of the Affordable Care Act. If an insurance provider spends less than 80 to 85 percent of your premiums on your medical care and quality the change will go back to you in one form or another. Either your company will pay you directly or use the money to improve your insurance.
"It will definitely make it harder for insurance companies to deal with the normal variation that occurs," said Dr. Kellogg
Dr. Kellogg said the measure will offer transparency to the consumer.
"Within a lot of people's minds insurance companies have a lot of waste and they spend too much money on advertising, administration and those types of things," said Dr. Kellogg.