The reason for the refund stems from the high level of reserves held by the company. The refund consists of “80 percent of one month of premiums, based on the August 2006 premium and enrollment, up to a maximum amount of $26.6 million.”
The refund will be given to only “fully insured group health plans,
bank depositor and Nodakare subscribers, and student subscribers with Noridian health plan coverage.” That seems like a monstrous amount of money that could be used to insure thousands of other people that lack insurance. I wonder how many of the people that will receive a refund would be willing to part with the money in order to insure other people?
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