The medical loss ratio provision of the Affordable Care Act, which requires insurers to spend at least 80% of the money they collect from premiums on improving medical care, is a source of constant controversy throughout the country. Insurers have claimed that the rule cripples their ability to remain financial solvent in the current economic climate. The Government Accountability Office has released a new report countering the claims from the insurance industry. The report shows that most all insurance companies in the U.S., both large and small, are able to…
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Indiana’s request for exemption from the medical loss ratio rule is denied
Earlier in the year, Indiana’s Department of Insurance submitted an official request to the federal government seeking to free the state’s insurance companies from the medical loss ratio requirement of the Affordable Care Act. The health care law dictates that all insurers should spend no less than 80% of the money they collect on premiums on improving medical care. According to the law, if companies fail to meet the requirement, they must return the money to consumers. Indiana’s request for an exemption from the rule has been denied by the…
Read MoreHealth Care Reform Update: New waiver proposal for industries and citizens
The Department of Health and Human Services has proposed several new waiver rules that will give states more control of their own health care systems and regulations. Backed by the Obama administration, the waivers will provide states with more flexibility. If the proposal is successful, states will have more freedom in creating their own systems that will support federally mandates health insurance exchanges. Additional legislation is being proposed to make the waivers available by 2014 instead of 2017. States may apply for “Innovation Waivers” that will allow them to come…
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