Health insurers to pay $62M in rebates in Illinois

CHICAGO (AP) - The Obama administration has announced that 300,000 Illinoisans will benefit from nearly $62 million in rebates from insurance companies because of the federal health law that critics have labeled "Obamacare."

The law requires insurance companies to spend at least 80 percent of the premiums they collect on medical care and quality improvement — or return the difference to consumers and employers by Aug. 1.

The administration says the Illinois rebates will average $380 for the 163,000 families covered by policies not meeting the standard. Some will go to individuals and some to employers, who can apply rebates in a way that benefits workers.

Individual policyholders owed a rebate will either get a check, a reimbursement to their credit card account or see a reduction in future premiums.