Health plans are required by the new health reform law to spend a minimum percentage of premiums on care or to pay rebates to customers, and NAIC has been charged with defining the medical loss ratio. The subpanel adopted the draft regulations with some edits and is expected to be open for comments about them through Oct. 11, according to the report.
NAIC commissioners reportedly are still debating three topics, including whether the medical loss ratio should be calculated by state or aggregately, deduction of taxes from premiums and adjustments for smaller health plans to protect them against penalties in case they face a year with unusually large pay-outs.
A larger panel will vote on the draft Oct. 14. If the draft is accepted, it will come before the NAIC’s executive/plenary session at the Fall National Meeting on Oct. 21.
Read The Hill‘s news report about the medical loss ratio draft.
Read other coverage about NAIC:
– State Commissioners Group: Insurers are Alarming Seniors About Health Reform
– Draft Rules on Insurers’ Non-Medical Expense Limits Involve 5 Key Issues
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