Eleven insurance companies doing business in New York have been ordered by the governor there to refund $114.5 million to policyholders who were overcharged for health insurance premiums in 2010, with more than half of the refunds due coming from Empire, the New York Department of Financial Services (DFS) announced today.
Empire’s refund payment to consumers was tallied at a little over $61 million. The other big New York player, UnitedHealthcare, has an affiliate (Oxford) involved in the refund.
Through the prior approval law, the DFS is working to keep rates from "spiraling out of control" while also ensuring consumers get refunds when insurance companies don't spend enough of premiums on medical care.
Aetna respnded by noting that "the overwhelming majority of our NY business met the MLR requirements."