In a letter to HHS sent April 29, Kansas Insurance Commissioner Sandy Praeger requested gradual implementation over the next three years, allowing insurers time to adjust. Since 1981, health insurers in Kansas have had a medical-loss ratio of 55% for the individual market.
Kansas is requesting a medical-loss ratio threshold of 70% this year, 73% in 2012, 76% in 2013 and 80% in 2014, according to documents filed with the Center for Consumer Information and Insurance Oversight at the CMS.
Without the adjustment, Kansas insurers would have to pay $6.3 million in rebates to individual policyholders for the 2011 plan year, according to the Kansas Insurance Department.
Florida, Georgia, Iowa, Kentucky, Louisiana, Nevada, New Hampshire, North Dakota and the territory of Guam have all asked HHS for similar adjustments. HHS has granted a reprieve to one state so far, Maine.