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Obama administration rejects Florida’s request for weaker insurance spending rules; consumers could see rebate checks by late summer (Palm Beach Post)
Saying Florida has a competitive insurance market, the Obama administration
has denied the state's request to let it put off tough new Affordable Care Act
rules that limit what insurers can spend on overhead and administration.
Under the health overhaul, beginning this year, insurers are required to spend
at least 80 percent of their customers’ premium dollars on actual medical
care, as opposed to salaries, overhead or broker’s commissions. Today’s
decision means consumers whose companies overcharge them will receive rebates
by Aug. 1.
Based on 2010 data, Florida insurers would have had to return $100 million to
customers, said Steve Larsen, director of the Center for Consumer Information
and Insurance Oversight at the U.S. Department of Health and Human Services.
But he said companies have lowered premiums to avoid having to pay rebates in
2012, and so once the 2011 data is tallied, the total amount that must be
returned will be smaller.
Larsen called the spending rules “one of the most important consumer
protection provisions” in the Patient Protection and Affordable Care Act.
“It helps ensure that consumers get value for their premium dollars,” Larsen
said.
Under the health overhaul, states could ask the federal government to ...
This entry was posted on Saturday, October 31st, 2009 at 10:59 pm and is filed under Body Piercing. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.