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Congressman Andrews Announces Rebates and Health Care Savings for South Jersey Families

Press Release

Location: Washington, DC

Wednesday, Congressman Andrews announced that a total of 18,400 individuals in New Jersey's First Congressional District, spanning most of Camden and Gloucester Counties and part of Burlington County, will receive $1.5 million in refunds from their health insurance companies thanks to the health reform law.

Under the Affordable Care Act, insurance companies are required to spend 80 to 85 percent of premium dollars on medical care and health care quality improvement, rather than on administrative costs or CEO bonuses. If they don't, the insurance companies must provide a refund to their customers. According to a recent report from the Centers for Medicare and Medicaid Services, in 2012 8.5 million consumers received half a billion dollars in refunds -- with the average consumer receiving a refund of around $100 per family. In South Jersey, that amounts to $1.5 million for over 18,000 consumers, which works out to an average rebate of $104 per family for costs owed in 2012 and $300 per family in 2011.

"When you pay health insurance premiums, the money should go toward actual health services -- not profits, overhead or administrative costs for the insurance company," said Congressman Andrews. "Putting patients first, expanding care, and stopping health care costs from spiraling out of control is why we passed this law and this rebate helps make sure these goals happen."

Rebates will begin flowing to consumers as early as August of this year. Families can receive these refunds in several ways: a refund check in the mail; a lump-sum reimbursement to the same account that they used to pay the premium if by credit card or debit card; a reduction in their future premiums; or their employer providing one of the above, or applying the refund in another manner that benefits its employees, such as more generous benefits.

For more information or assistance regarding this rebate program, please feel free to contact Congressman Andrews' district office at (856) 546-5100.

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