(AUSTIN, Texas) ─ The Texas Department of Insurance (TDI) will likely soon ask the federal government to delay implementing one of national health reform’s new consumer protections, a medical loss ratio minimum standard, within the state. A full analysis of the effect on Texasconsumers cannot be provided until after the state submits a request to the federal government, but CPPP has provided a Memorandum on Medical Loss Ratio Adjustments in advance of any state action.
"The state and federal governments should ensure that the outcome of this process is in the best interest of Texas consumers not just insurers’ bottom lines," says Stacey Pogue, CPPP senior policy analyst.
"Medical loss ratio standards put reasonable limits on insurers’ administrative costs and hold insurers accountable for providing good value to consumers for their hard-earned premium dollars," says Pogue. "The existing MLR standard helps consumers realize greater value from their health insurance by putting reasonable limits on administrative costs, encouraging insurer efficiency, and providing an incentive for plans with low MLRs to either lower premiums up front, or pay rebates to consumers."