Tags: insurance | obama | commissioners | spending | rule

U.S. Group Backs Health Insurance Spending Rules

Thursday, 21 Oct 2010 11:57 AM

 

A key group of state insurance commissioners has backed recommendations dictating how U.S. health insurance companies should spend customers' premium dollars.

The National Association of Insurance Commissioners (NAIC) said in a statement that the group, which is charged with proposing the spending rules under the new healthcare law, passed "only technical amendments" to its proposals before sending them to U.S. health officials.

Such spending ratios, known as a medical-loss ratio or MLR, have been closely watched by Wall Street as a sign of potential profitability. But under the law, customers would see some of those extra funds in the form of a rebate.

Under the law passed in March, insurers' large groups' health plans must allocate at least 85 cents-per-premium dollar to medical care, not administrative costs or profit. Plans for individuals or small groups must spend 80 cents per dollar.

NAIC's definitions for what counts as medical spending and other recommendations now move to the U.S. Department of Health and Human Services, which will decide whether to adopt the proposals as regulation or first make changes. U.S. Health Secretary Kathleen Sebelius has said the agency would like to move on the regulations this month.

Insurers, which include companies such as Aetna Inc , Cigna Corp, Humana Inc, WellPoint Inc and UnitedHealth Group Inc, must implement the spending changes by Jan. 1. (Reporting by Susan Heavey; Editing by Maureen Bavdek)

© 2015 Thomson/Reuters. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

'Ebola Czar' Ron Klain Will Leave Job Feb. 15

Thursday, 29 Jan 2015 22:32 PM

The Obama administration's "Ebola czar" will leave his post on Feb. 15, although he said there is still work to do at er . . .

Texas Executes Killer Who Claimed Mental Impairment

Thursday, 29 Jan 2015 21:41 PM

The state of Texas on Thursday executed a convicted rapist-killer whose lawyers argued was severely mentally impaired, h . . .

Trump, O'Reilly Make Up After Digs at Each Other

Thursday, 29 Jan 2015 21:29 PM

Business mogul Donald Trump and Fox News host Bill O'Reilly were pals again after Trump appeared on Fox News Channel's " . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved