During a joint session, the Executive and Plenary committees of the National Association of Insurance Commissioners (NAIC) voted to adopt a model regulation containing the definitions and methodologies for calculating medical loss ratios as required by the Patient Protection and Affordable Care Act (PPACA). The model will be delivered to Health and Human Services (HHS) for certification by the Secretary.
The next step is for the HHS to take model presented and use it as a base to issue a medical loss ratio regulation that will provide clear guidance to stakeholders in the coming weeks.
HHS Secretary Kathleen Sebelius stated, “These recommendations are reasonable, achievable for insurers and will help to ensure insurance premiums are, for the most part, supporting health benefits for consumers. Not only do they ensure consumers receive better value for their health care dollar, they recognize special circumstances in different markets to preserve market stability and employee coverage as we transition to the new marketplace in 2014.”
For a complete copy of the press release: http://www.hhs.gov/news/press/2010pres/10/20101021a.html