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Insurers overspend funds, consumers get refunds

DETROIT (WKZO) -- Seventeen Michigan insurance companies are among those nationwide that took money that was supposed to cover health care and instead spent it on overhead. A report released by the Obama administration shows that these companies must either send checks or offer savings valued at more than 13-million dollars to customers across the country.

Federal law dictates that companies covering small groups and individuals are required to spend at least 80-percent of premiums on patient care or to improve patient care quality, with companies covering large groups spending 85-percent on patients. Refunds to qualified consumers must be issued by August 1st.