State Insurance Regulators Unable to Meet June 1 Deadline

June 2, 2010

Percentage of medical premium spent on claims at issue

The National Association of Insurance Commissioners (NAIC) is assisting the federal government in creating the rules which would determine what expenses would be calculated in medical loss ratios. Insurers are required to spend 80 or 85 percent of premiums on health care claims or expenses that improve health care. The delay is around identifying what expenses should be included in the formula. HHS expects NAIC's recommendations soon.

The Medicare twenty-one percent cut in physician payments went into effect yesterday. The House approved a bill pushing out the cuts for nineteen months but the Senate did not. They are expected to review the measure next week when they return. CMS has told doctors they will hold bills for ten days to see if the Senate approves the bill.

The June 2, 2010 NAHU Newswire has more information on these stories and other health care related topics.

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