Orlando, Florida is hosting a meeting of insurance commissioners that will decide how much should health insurers should mandatorily spend on providing healthcare facilities as opposed to profits and administrative costs. The federal health reforms want health carriers to spend their financial resources to their consumers and this delegation will work out the details of it.
After deliberating on it for the last seven months, the group will submit its final recommendations to the federal US government. However, there are concerns that the move will prompt insurance companies to desert small scale businesses and other niche groups.
According to the Affordable Care Act, insurers selling large group plans must spend at least 85 cents of every premium dollar on medical care and plans for individuals or small groups must spend 80 cents per dollar.
Gary Claxton, head of the Health Care Marketplace Project, Kaiser Family Foundation commented, “At stake is how much money the industry gets to keep from what they bring in.”
Health carriers, meanwhile, are scurrying up for last minute changes before the National Association of Insurance Commissioners; vote in on the spending details.
Insurance companies are pressing for tax exemptions, a longer phase-in period, and a broader national assessment to see if companies are meeting the rule.
Insurers fear that the new reform laws will not only impact their profits but could also force them to withdraw coverage to certain health plans like small or individual health plans. The Democrats, however, are certain the tighter insurance regulations will curb the health insurance controversial prices and the exponentially rising premium rates.
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