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Seems like some carriers are threatening to leave the market place instead of lose money. I'm telling ya - this approach WILL work especially if more and more carriers have the balls to play chicken with the feds!
From the article:
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The Affordable Care Act calls for the NAIC to help implement new minimum medical loss ratio (MLR) provisions, which will require large plans to spend at least 85% of revenue on health care and quality improvement activities, and individual and small group plans and insurers to spend at least 80% of revenue on health care and quality improvement efforts.
Most of the minimum MLR provisions are set to take effect on or after Jan. 1, 2014.
Implementing the minimum MLR requirement is proving to be the most challenging PPACA issue the NAIC has taken up thus far, officials said.
State regulators want to write regulations that are narrow enough to conform with the law but broad enough to avoid forcing insurers out and disrupting the health insurance market.
Meanwhile, many companies are saying they will have to drop out of the individual health insurance market because they cannot meet the 80% MLR requirement.
Iowa and Maine already are looking to HHS for a minimum MLR requirement waiver, according to Iowa Commissioner Susan Voss. It is unclear how many other states could follow suit.
NAIC Vice President Kevin McCarty, the Florida insurance commissioner, said he will hold a hearing in his state Friday to gather evidence about arguments that the minimum MLR requirements will cause disruption.
McCarty said Jay Angoff, director of the HHS Office of Consumer Information and Insurance Oversight, needs more to go on than reports of “amorphous displeasure” in the marketplace.
Some carriers might simply have trouble adapting to the new paradigm, and “we might lose some of those players,” McCarty said he told Sebelius.
Seems like some carriers are threatening to leave the market place instead of lose money. I'm telling ya - this approach WILL work especially if more and more carriers have the balls to play chicken with the feds!
From the article:
----------
The Affordable Care Act calls for the NAIC to help implement new minimum medical loss ratio (MLR) provisions, which will require large plans to spend at least 85% of revenue on health care and quality improvement activities, and individual and small group plans and insurers to spend at least 80% of revenue on health care and quality improvement efforts.
Most of the minimum MLR provisions are set to take effect on or after Jan. 1, 2014.
Implementing the minimum MLR requirement is proving to be the most challenging PPACA issue the NAIC has taken up thus far, officials said.
State regulators want to write regulations that are narrow enough to conform with the law but broad enough to avoid forcing insurers out and disrupting the health insurance market.
Meanwhile, many companies are saying they will have to drop out of the individual health insurance market because they cannot meet the 80% MLR requirement.
Iowa and Maine already are looking to HHS for a minimum MLR requirement waiver, according to Iowa Commissioner Susan Voss. It is unclear how many other states could follow suit.
NAIC Vice President Kevin McCarty, the Florida insurance commissioner, said he will hold a hearing in his state Friday to gather evidence about arguments that the minimum MLR requirements will cause disruption.
McCarty said Jay Angoff, director of the HHS Office of Consumer Information and Insurance Oversight, needs more to go on than reports of “amorphous displeasure” in the marketplace.
Some carriers might simply have trouble adapting to the new paradigm, and “we might lose some of those players,” McCarty said he told Sebelius.