However, that time has come and gone and insurance regulators say they need more time to make decisions about medical loss ratios as The Washington Post .
Under the law on health insurance, the health insurance companies must spend at least 80 to 85 percent of premiums to pay for medical claims and improving health care. This leaves health insurers from 15 to 20 percent to spend on administrative costs. The bodies of state insurance regulators were supposed to provide guidelines for what should be considered as medical or administrative costs.
This provision is to keep costs low for health care consumers. But if the definition of medical loss ratios is too narrow, the health insurance companies can cut some of their major programs for consumers, such as hotlines nurses.
The National Association of Insurance Commissioners said: "The physician loss ratio and rebate program ... have the potential to destabilize the market and significantly limit consumer choices if the definitions and the calculations are too restrictive. Similarly, the rate of loss and medical reimbursement program could be rendered useless if the definitions and calculations are too broad. "
The definition of medical loss ratio could change health insurance companies in order to do business or it could have a very minimal impact. Anyway, the medical loss ratios should be fair to be effective.
0 Komentar