Staying strong on protecting premiums dollars for patient care!

The U.S. Department of Health and Human Services has released a final medical loss ratio rule and an interim final rule. It’s the key consumer protection that ensures that 80-85% of your health insurance premium dollar goes to patient care, rather than administration or profit.

Despite heavy lobbying from agents and brokers to weaken the regulations by excluding their commissions from these calculations, the final rule stayed strong on this point, to the benefit of consumers. (The NAIC had a vote on a resultion on this issue, which the brokers and agents only narrowly won, which probably diluted the impact on HHS.)

This is an important win for consumers, to ensure they are getting the most value for their premium dollar, and for transparency in the marketplace.

Here are the new rules:

and the fact sheet from HHS:

Health Access California promotes quality, affordable health care for all Californians.

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