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Report shows Michigan insurance companies spent money on overhead instead of patient care

LANSING, MI (WTVB) - 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 today shows that these companies must either send checks or offer savings valued at more than $13-million to customers across the country.

Federal law dictates that companies covering small groups and individuals are required to spend at least 80%nt of premiums on patient care or to improve patient care quality, with companies covering large groups spending 85% on patients.  Refunds to qualified consumers must be issued by August 1, 2014.