Hundreds of thousands of Floridians could be in line for perhaps $100 million of health insurance rebates in August, under a federal review process that began Thursday.

The federal health care overhaul passed by Congress in 2010 forces insurers to pay rebates starting this year if they spend more than a certain amount of their revenue on non-medical costs, such as advertising and profit.

Insurers started reporting their financial figures Thursday, so federal officers can determine how so much they owe in rebates. Refund estimates from Florida corporations may not be launched till next month, and final figures now not till June. Rebates may well be paid as tests or discounts on future expenses.

“no matter what it seems to be, it’s going to be an overly big number,” said Avram Goldstein, a spokesman for the nationwide client team well being care for the united states Now, which has tracked the Florida situation.

State insurance officials attempted last year to delay enforcement of the rule, saying it would disrupt the insurance market. But the federal Department of Health and Human Services denied the request in December in what was seen as a national test case.

As part of the request, state officials estimated that 12 Florida insurers would have to pay $107 million in rebates this year to about 706,000 customers with individual health coverage. That would work out to $152 apiece.

In that estimate, the biggest rebates would be owed by United Healthcare subsidiary Golden Rule, $37 million; Humana, $28 million; and Connecticut General, $11 million. Golden Rule spokeswoman Ellen Laden said it’s too soon to make projections for Florida.

Other estimates of the Florida rebates were decrease. Jupiter-based consumer staff Florida community well being motion data community (CHAIN) and the nationwide affiliation of insurance coverage Commissioners expected about $70 million.

none of the Florida estimates up to now count rebates for other folks lined by way of large or small team policies, corresponding to those equipped by way of employers. The NAIC has pegged the entire rebates national at $1.five billion or extra.

But experts stated they expect very little rebates to be owed to shoppers of larger crew plans as a result of those have a tendency to be extra competitive and less prone to exceed the spending cutoff. large employers that self-insure aren’t covered through the regulation.

The health care overhaul required firms to pay rebates this yr for particular person insurance policies if they spent more than 20 % of premium earnings on prices rather than therapies, physician bills and other medical costs. The cutoff for higher workforce insurance policies is 15 %.

Insurers and Republican officials have opposed the law, saying it’s arbitrary and would dry up profits for insurance companies, which often have profit margins of a few percentage points.

Restricting spending on non-scientific pieces does now not convey down health care prices, stated Robert Zirkelbach, a spokesman for the us’s health insurance Plans.

“It does now nothing to deal with the actual drivers of top class increases for consumers,” Zirkelbach stated, equivalent to emerging prices for brand new generation, treatments, docs, hospitals and different providers.

but consumer advocates hail the law as reining in excess non-medical spending by way of insurers.

“Finally consumers are getting more value for their dollar and getting what they paid for,” said Laura Goodhue, executive director of CHAIN.