LANSING, Mich. — Michigan businesses and consumers received more than $102 million in adjustments, refunds or credits for health and dental insurance premiums this year, according to the Michigan Department of Insurance and Financial Services.
The department’s May bulletin provided guidance to insurance companies on passing on savings from reduced claims activity due to COVID-19 to Michigan businesses and consumers.
“These approved refunds and credits are putting money back into people’s pockets and are helping employers keep their doors open,” DIFS Director Anita Fox said. “DIFS remains committed to supporting Michigan’s financial recovery as we respond to the COVID-19 pandemic and the associated economic crisis.”
In the bulletin, DIPS detailed filing requirements for health and dental insurance companies’ plans to issue premium credits or refunds, as appropriate, because of reduced claims during the pandemic.
Read the full bulletin here.
Those requirements include a detailed communication plan to inform policyholders about the refunds or credits, how they will be applied and the timeframe during which the credit or refund will apply.
Companies should also explain how annual benefits will be addressed for individuals, such as well-baby visits, annual physicals, dental cleanings, mammograms and more.
Fifteen dental and 11 insurance companies issued refunds or credits in 2021, according to DIFS filings.
For dental insurers, premium credits ranged from 10% to 100% per month for one to six months.
For health insurers, they ranged from 5% to 30% per month for one to six months.