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Elizabeth Stawicki
ST. PAUL, Minn.

Health insurance rebate coming to some Minnesotans

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A health insurance rebate could be coming to 9,161 Minnesotans.

As of last year, the federal health care overhaul requires insurers to spend between 80 and 85 percent of their premium dollars on direct medical care, rather than administrative costs such as marketing and executive bonuses.

If insurers spend too little on health care, they must provide rebates to consumers. The rule was championed by Democratic U.S. Sen. Al Franken. Minnesota consumers will receive about $1.4 million for an average rebate of about $303 each.

Depending on how a plan is structured, the rebate may go the employer instead of the employee. Last year about 120,000 Minnesotans got rebates totaling nearly $9 million. The Obama administration contends the rule motivated health insurers to lower prices or improve their coverage to meet the standard.