Centene, one of the insurers that participates in the Arkansas Works Medicaid program had to refund $12.3 million to the federal government, the state, and consumers after the company collected too much in premiums. The U.S. Department of Health and Human Services’ Centers for Medicare and Medicaid Services reported Centene collected $983 million in premiums from Arkansas Works enrollees and other consumers from 2016-18, but only spent $756 million of the money collected on medical care and other health-related expenses.
According to federal law, the percentage of health care expenses must be at 80%. Centene fell short by 3% thus having to send refunds to people. The average refund will be $108.
The refund will be the largest of any insurer in the state since the beginning of the requirement. Centene was required to refund $6.8 million in 2015, $784,875 in 2016, and $3.3 million in 2017.