Bills Propose Medical-Loss Ratio Parity for Medigap Plans
On Tuesday, Sen. John Kerry (D-Mass.) and Rep. Pete Stark (D-Calif.) introduced legislation (S 1416, HR 2645) in the Senate and House that would require Medicare supplemental insurance plans, or Medigap policies, to meet the same medical-loss ratio standards as other health plans under the federal health reform law. The MLR rule requires private insurers to spend at least 80% of their premium dollars in the individual market, or 85% in the group market, on direct medical costs. If passed, the companion bills would require the plans to meet the standards beginning in 2014.
- "Legislation Aims To Boost Medigap MLR" (Zigmond, Modern Healthcare, 7/26).