AHIP is asking for more time through a transition period (perhaps up to 2014) to enable many of its member carriers to meet the 80 and 85 MLR ratios required by the ACA. Those who do not meet these requirements will have to issue rebates to their members (see my earlier posts about the Blues Plan in NC). Implementation of this requirement can also be problematic because as many as 17 state insurance commissioners may be new to their offices come January 1st.
The NAIC meets in Orlando this week to approve the regulations for the new MLRs. For more details please click on this link: http://money.cnn.com/2010/10/15/news/economy/health_care_MLR_vote_impact/
The large carriers will have no problem meeting these new standards. It will be the smaller ones that have the issues. If these carriers leave the market Like Principal did it will mean that the big carriers have less competition. On the other hand the new MLR requirements will force the carriers to be more efficient which is a good thing.
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