Updated March 22 at 9:20pm
health care

R.I. one of two states with no ‘overcharging’


CRANSTON – Rhode Island was found to be one of two states – the other was New Mexico – where the commercial insurers’ rates were found to be not excessive compared to their actual performance, in 2011, according to the Center for Commercial Insurance Information of the U.S. Department of Health and Human Services.

Under the “80/20 rule,” if an insurer’s medical costs in 2011 were less than 80 percent of the premiums they collected, the premiums were consider to be excessive and consumers were entitled to rebates, according to the R.I Office of the Health Insurance Commissioner. In some states, consumers were overcharged by as much $807 per consumer, according to the agency.

“The information from Centr for Commercial Insurance Information is further proof that insurance rate oversight in Rhode Island is appropriate and working for Rhode Islanders,” said R.I. Health Insurance Commissioner Christopher F. Koller. “Health insurance is expensive, and we are working to make it more affordable. Thanks to comprehensive rate review, health insurance consumers in Rhode Island don’t have to overpay their insurers and then wait for a rebate check after the fact.”

Information about the “80/20 calculation” can be found at www.healthcare.gov/law/resources/reports/mlr-rebates06212012a.html.


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