Insurance

Latest California Healthline Stories

Insurance Agents Try To Broker Deal on MLR

Few stakeholders have been as quickly affected by the health reform law as insurance brokers — and few have pushed back against the law as speedily. Brokers’ battle to change medical-loss ratio rules is a microcosm of the broader fight to shape the overhaul’s implementation.

New High-Risk Rates Welcomed

When California’s Managed Risk Medical Insurance Board decided to create a state-run, pre-existing condition insurance plan in October, 2010 instead of using the “federal fallback” program, it didn’t mean complete autonomy for California officials.

The high-risk insurance program is funded through 2013 by a $761 million allotment from the federal government and federal officials have some guidelines about how that money is spent.

To entice more enrollees, the federal HHS lowered premiums on the pre-existing condition plans in states using the federal fall-back program. HHS requested that all plans, including state-sponsored ones, create a new child-only age band, moving it from birth to 14-years-old to include children up to 18. Secondly, HHS reinterpreted the payment plans for subscribers in each of the nation’s PCIP — or pre-existing condition insurance plan — regions.

Blue Shield’s Rate Motives Explained

Could Blue Shield of California’s motivation for making an about face on its proposed May 1 rate increase have anything to do with California’s new Health Benefits Exchange, slated to launch in 2014?

Blue Shield officials say no. 

However, whether intended or not, the decision probably won’t hurt the company’s relationship with the state’s Department of Insurance. Legislation creating California’s new exchange grants the state insurance commissioner authority to recommend insurers to the exchange based on the equity of their rate increases.

Blue Shield officials said retreating from the proposed rate hikes will allow the company to more freely address issues causing medical costs to rise.

Physicians Are Insurance Consumers, Too

Since taking office less than two months ago, Insurance Commissioner Dave Jones has made it clear he wants to protect consumers from insurers — and he made moves to get the authority to curb excessive insurance rate hikes and enforce new federal medical loss ratios.

Jones still doesn’t have the rate-regulation authority he said the California Department of Insurance needs, but he does have the enforcement power to go after insurers who don’t meet medical loss ratio standards.

Now Jones’ office is targeting a new type of insurance: medical malpractice.