Several states were recently denied requests for an exemption from a provision of the federal health care reform law that requires insurers to spend at least 80 to 85 percent of premiums on costs associated with medical services. But Connecticut isn’t look for help.
Those state’s, including Indiana and Louisiana, asked the federal government for exemptions from the medical loss ratio (MLR) provision until 2014 arguing that the rules were discouraging insurers from selling individual policies and could force some insurers to exit the market.
The federal government disagreed with the assessment.
The new rule is a major new part of the federal health care reform law and essentially restricts insurers from spending more than 15 to 20 percent of the premiums they collect from individuals and employers on business costs and profits.
So far 17 states have filed waivers requests from the MLR provision, but Connecticut is not one of them.
Connecticut Insurance Department spokeswoman Donna Tommelleo said the state has not requested an exemption from the provisions.
“Commissioner Thomas Leonardi believes that the MLR calculation is in the best interest of Connecticut consumers,” Tommelleo said. “The Department meets regularly with health insurance companies and has not heard of companies either leaving the Connecticut market or reducing their product offering because of the MLR calculation. Some of the states that have requested the MLR exemption have limited markets. That is not the case in Connecticut, which has a relatively robust market and more choices for consumers.”
