Michigan lawmakers have failed to obtain an exemption from the federal government regarding the new medical loss ratio provision of the Affordable Care Act. The provision requires the state’s health insurers to pay no less than 80% of the money they collect from premiums on improving medical care. If insurers cannot meet this standard, they must return the money to policyholders. Legislators in Michigan have been fighting for an exemption, but federal legislators denied the effort early this week. According to state regulators, consumers may be eligible for $89 million…
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Blue Cross Blue Shield of California to return millions of dollars to policyholders
Last year, California health insurer Blue Cross Blue Shield announced that it would be returning more than $160 million in surplus profits to its 2 million policyholders. Amidst accusations of profiteering, the company has announced another wave of refunds that will total $283 million, which will begin being sent out in December of this year. Most of the rebates will come in the form of credit on insurance bills. The company notes that December’s refund will likely cut policyholder’s bills by at least half. Individual policyholders can expect to see…
Read MoreThe National Association of Insurance Commissioners withdraws its support of an insurance bill on its way to Congress
Insurance brokers have been rallying behind a controversial bill before Congress. The bill was first introduced last month by Senator Mike Rogers of Michigan. The legislation seeks to remove the sales agent fees from insurers’ administrative costs. Supporters of the bill assert that it will help protect the jobs of agents. Furthermore, by reducing costs, insurers will be able to transfer the savings down to consumers. For insurers, the bill holds such promise that they were hoping that federal insurance regulators would endorse it. Regulators, however, have a much different…
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