A health insurer will be sending refunds to about 1,300 small businesses in Maine, according to officials at the Maine Bureau of Insurance.

MEGA Life and Health Insurance Company, a unit of HealthMarkets Inc., North Richland Hills, Texas, will be providing about $364,000 in refunds along with $39,500 in interest, officials say.

MEGA is making the refunds because it found a system error while conducting a review of its 2010 rate filing, officials say.

“The company identified the system error and has cooperated fully with the Maine Bureau of Insurance to identify the customers affected, to determine the amount overcharged, and to develop a method for providing a refund that includes interest,” officials say.

The refunds will range from $5 to $4,200 per affected employer, with an average of about $300, officials say.

MEGA supports the facts included in Maine’s announcement, a MEGA representative says.

Other Maine coverage from National Underwriter Life & Health: