Posts Tagged - ‘jay rockefeller’

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Sen. Rockefeller Accuses Health Insurance Companies of Weakening Reform

Tuesday, May 11th, 2010

Image: West Virginia Blue under CC 3.0

Health insurance reform is already starting to make many changes to how insurers do business. Obviously, they were opposed to the legislation, but since it passed they have been attempting to ensure that it’s enforced in the most favorable way.

Democratic Senator Jay Rockefeller thinks they may be going too far in trying to weaken healthcare reform provisions. He accuses them of hiring lobbyists to water down the spending rules that will force them to spend higher percentages of the health insurance plan premiums collected on providing medical services (as opposed to shareholder dividends or administrative costs). The National Association of Insurance Commissioners (NAIC) and Secretary of Health Insurance Kathleen Sebelius must make their recommendations on the issue by June 1st.

Specifically, he is warning the Obama administration of accounting and statistical tricks that mask the fact that while many insurers already meet the new standards (a medical loss ratio of 85% in large group policies and 80% for individual and small group policies) in many products and areas, they are not yet universally compliant–although they may aggregate their information together in a way that claims to be. In addition, they may be trying–in advance of the 2014 deadline–to classify as many costs as possible as medical expenses.

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