The chairmen of two influential House committees sent a letter to HHS Secretary Kathleen Sebelius supporting their home state of Michigan’s request for a waiver from the medical-loss ratio provision for individual health insurance. Mandated in last year’s Patient Protection and Affordable Care Act, the medical-loss ratio provision requires that insurance companies in the individual market spend at least 80% of premium dollars on medical services. “In Michigan, seven health plans insure almost 90% of consumers in the individual insurance market, totaling 305,003 people in 2010,” Reps. Dave Camp (R-Mich.), chairman of the House Ways and Means Committee, and Fred Upton (R-Mich.), chairman of the lower chamber’s Energy and Commerce Committee,” wrote to Sebelius. “Based on 2010 data, only two of the seven health plans would be able to meet the 80% MLR threshold,” they wrote, adding that combined, the seven plans would have a net estimated loss of $30.9 million in 2010 if they were forced to comply with the requirements.
Late News: Two House chairmen support Mich.'s loss-ratio waiver request
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