Medical loss ratio plan forwarded by NAIC

Nov 15, 2010

Premium costs may be affected by new rules for medical loss ratios.

Having the proper health coverage can prove beneficial to consumers in a number of ways, including paying lower life insurance premiums.

Federal healthcare reform came through the passage of the Patient Protection and Affordable Care Act. While some of its requirements are already in effect, others will come about in the years to come.

Recently, the National Association of Insurance Commissioners adopted a regulation concerning definitions and methods for determining medical loss ratios. The model is a feature of the PPACA, and the NAIC's plan will be sent along to the Department of Health and Human Services for review.

Jane Cline, NAIC president and insurance commissioner for West Virginia, said challenging issues were mulled in the process of developing the plan.

"The committee model regulation on MLR passed with only technical amendments, which is a testament to our inclusive and transparent process," Cline said.

MLR is the portion of insurance company expenses that go toward paying for medical services, which can affect the cost of premiums. The PPACA establishes that a certain amount of consumers' costs must go to paying for health services.

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