The Texas Department of Insurance has been reviewing health insurance rate proposals since the Affordable Care Act was passed in 2010. Regulators have been scrutinizing any insurer that aims to raise rates by 10% or higher, but their efforts may be in vain. According to the Department of Insurance, regulators do not have the authority to block any rate proposal that they deem excessive. They also do not have the means to distribute information regarding rate hikes amongst consumers. This is because the state does not have the laws to…
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Texas petitions federal government to delay enactment of the medical loss ratio provision of the Affordable Care Act
As some states seek exemptions from the controversial medical loss ratio provision of the Affordable Care Act, Texas officials are looking to the enacted of the plan delayed. The provision requires insurance companies to spend at least 80% of the money they collect from premiums on improving medical care. Insurers have been opposed to the provision since it was passed in 2010, arguing that it would hurt their ability to stay competitive in the market. Federal regulators have, thus far, been unwilling to cave to the concerns of insurers. State…
Read MoreTexas lawmakers look to rebuke application for medical loss ratio exemption
Texas legislators are urging the state’s Insurance Commissioner, Eleanor Kitzman, to withdraw an application for exemption from the medical loss ratio provision of the Affordable Care Act. The provision requires health insurers to pay no less than 80% of the money they collect through premiums on improving medical care. The provision has been a point of contention for insurers, who have fled some states that were unable to attain a waiver from the rule. Commissioner Kitzman is looking for an exemption to prevent an exodus of insurers from the state.…
Read MoreTexas insurance bill promises transparency
Texas is making a move to ensure the transparency of the state’s insurance industry. Legislators are toiling over a bill, dubbed the Texas Insurance Awareness and Affordability Act, which will require insurers to provide exhaustive information regarding any changes in policies. There have been growing concerns about how insurers determine their rate hikes recently, driving demand for more transparency. The bill is seeking to garner explanations on proposed premium increases in a language that everyone can understand. State insurers would be requires, upon changes in policy, to provide a side-by-side…
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