HCAN Commends State Regulators for Taking a Step Toward Holding Health Insurers Accountable
Washington, DC – The National Association of Insurance Commissioners (NAIC) today took an initial step toward comprehensive federal rules that determine whether health insurance companies spend an appropriate share of premium dollars on patient care rather than profits, CEO pay, lobbying and administration. The association approved a set of disclosure forms that will be filed by health insurers. Still, much remains to be done to ensure that the NAIC’s final product and subsequent federal rules are not weakened by the health insurance industry, which has spent more than $769 million on lobbying since 2007.
Today’s vote affects how companies calculate the medical-loss ratio (MLR), which is the percentage of premium revenue spent on actual medical services. The Affordable Care Act, enacted on March 23, 2010, requires insurers to spend on patient care and quality improvement at least 80 percent of health plan premiums collected from individuals and small employers and 85 percent of premiums from large employers.
Here is a statement on today’s NAIC vote from Ethan Rome, executive director of Health Care for America Now:
“Today the NAIC took a step toward ending the health insurance companies' stranglehold on our health care. The top state insurance regulators from across the nation voted to put patient care above insurance company profits. This decision moves us closer to more affordable health care for families and businesses and will help ensure that the new health care law fulfills its promise. Advocates have battled every step of the way to hold the insurance companies accountable, and we will continue to do so.
“Many challenges remain before we can declare victory in the MLR fight. Pivotal aspects of the technical rules discussed today in Seattle remain unresolved, including crucial decisions on how to treat federal taxes and agent/broker fees. The NAIC still has work to do, and it should finish its deliberations soon so the Department of Health and Human Services (HHS) can swiftly develop final rules that take effect on schedule for 2011 health plans.”
