A petition to waive the new medical loss ratio (MLR) requirements for insurance companies was filed by Florida Insurance Commissioner Kevin McCarty with the U.S. Department of Health and Human Services. McCarty argues that the 80 percent MLR would cause insurance companies to leave the market or stop selling new policies, reduce choice of plans and "hamper" insurance agent involvement "to the severe detriment of Florida consumers."
McCarty requested that the full MLR requirement not be implemented at all until 2014 and that the current requirement stay in effect until then. Under current law, HMO plans are required to have a 70 percent MLR and traditional insurance plans must have a 65 percent MLR. Under the MLR mandate of the Patient Protection and Affordable Care Act of 2010 (PPACA), insurance companies are required to spend 80 percent to 85 percent of premium dollars on health care, with the remainder for overhead and profit.
For more on this story, go to Florida Files For MLR Waiver; Iowa Petition Coming.
To see McCarty's letter, go to the following link: OIR March 11, 2011 Petition to U.S. Department of HHS.
This summary was prepared by Perry Cone and posted at www.tallyinslaw.com/
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