Sep 18, 2018
Blue Shield of California is issuing rebate checks to certain employers in accordance with the Affordable Care Act’s medical loss ratio (MLR) provisions. The company owes $19.2 million in rebates to 37,000 small group plan holders. Blue Shield’s MLR for small groups was 79.3%, missing the 80% target by 0.7%. So they will refund 0.7% of health plan premiums that employers and employees paid in those plans.
Blue Shield of California’s subsidiary, Blue Shield of California Life & Health Insurance Company (Blue Shield Life), owes about $300,000 in rebates to 44 large-group policyholders. Blue Shield Life’s MLR was 83.7% for large groups, missing the 85% target by 1.3% of premiums. They will refund 1.3% of health insurance premiums that employers and employees paid in those policies. As required by law, Blue Shield will pay the rebates to employers or group plan policyholders by September 30, 2018. Rebates are based on premiums paid in 2017.
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