Federal officials have denied requests from Indiana and Louisiana, both seeking to allow state insurers to bypass a federal health reform requirement that they spend at least 80 percent of premium revenue on patient care, according to a Bloomberg Businessweek report.
The U.S. Department of Health and Human Services said insurers in Indiana and Louisiana were either profitable enough to accommodate the spending or were already meeting the standard, meaning an exemption would not be worthwhile. Gary Cohen, acting director of oversight for the Center for Consumer Information and Insurance Oversight, said no insurance companies would be forced to leave the market because of the waiver denial.
Seven more states are awaiting rulings on similar requests. The Obama administration has granted waivers to six states, while four states have been denied exemptions. The rule aims to ensure that money paid to buy healthcare coverage goes to healthcare treatment and quality improvements, rather than company profits or administrative cost.
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The U.S. Department of Health and Human Services said insurers in Indiana and Louisiana were either profitable enough to accommodate the spending or were already meeting the standard, meaning an exemption would not be worthwhile. Gary Cohen, acting director of oversight for the Center for Consumer Information and Insurance Oversight, said no insurance companies would be forced to leave the market because of the waiver denial.
Seven more states are awaiting rulings on similar requests. The Obama administration has granted waivers to six states, while four states have been denied exemptions. The rule aims to ensure that money paid to buy healthcare coverage goes to healthcare treatment and quality improvements, rather than company profits or administrative cost.
Related Articles on Coding, Billing and Collections:
Physicians Push for Changes to Proposed Health Insurance Exchange Rules
New Yorkers Experience Relief From Insurance Rate Hikes
Marilyn Tavenner's CMS Nomination Meets Approval From AMA, Cautious Criticism From Republicans