MLR Battle Heats Up

Boyle cited Maine's successful fight to get an MLR exemption to help the state's producers and small carriers.

"Maine's difficult, 6-month effort to procure an MLR exemption shows that a broader fix is needed," Boyle says. "We believe the bipartisan Rogers-Barrow legislation would provide that."

Rockefeller Disagrees

Rockefeller brought up the MLR formula issue in a letter expressing his unhappiness with the NAIC's decision to schedule the producer compensation hearing.

The current MLR formula was approved by the NAIC in August 2010 after several months of debate and approved by the U.S. Department of Health and Human Services several weeks later, Rockefeller says.

Rockefeller tells the NAIC that he shares its "appreciation for

the valuable work that licensed insurance agents and brokers do on behalf of their customers," and "recognizes the valuable role agents and broker play in helping American consumers and businesses purchase health insurance."

But "I cannot support a proposal that would allow agents, brokers and health insurance companies to retain the estimated $1 billion in benefits that American consumers will receive next year thanks to the health care reform law," Rockefeller says.

The purpose of the PPACA MLR provision is to encourage health insurers to deliver health care services to customers in a more efficient and cost-effective way, Rockefeller says.

"I am encouraged by the fact that the new law is prompting many health insurance companies that were not meeting these targets to conduct a long-overdue review of their business operations and make changes that will result in higher-quality care and lower premiums for their customers," Rockefeller says.

More MLR coverage from National Underwriter Life & Health:

• PPACA: CCIIO Gives Maine a Medical Loss Ratio Waiver
• Ario to NAHU: Agents Likely to be Part of Exchange System
• MLR Rule Comes Under Fire at CIAB Event
• HHS Proposes Student Health Standards
• PPACA: HHS OKs Many Mini Med Waivers