Association Calls for Easing Into Medical-Loss Ratio Rules
Officials from the National Association of Insurance Commissioners have said that the medical-loss ratio rules contained in the new health reform law could disrupt the insurance market and negatively affect consumers. Under the overhaul, large health plans beginning on Jan. 1, 2011, will be required to spend at least 85% of premiums on medical services and quality improvement, rather than administrative costs or profits. NAIC has requested that the federal government allow a three-year transition in states with insurance markets that could be most affected by the new rules.
- "Seeing Threat to Individual Policies, State Officials Urge a Gradual Route to Change" (Pear, New York Times, 6/14).