State Iowa Health Insurance Commissioner Susan Voss has submitted a letter to Secretary Kathleen Sebelius requesting a waiver from the federal medical loss ratio (MLR) requirement for her state’s individual health insurance market. The letter expresses concern that the 80 percent MLR requirement established by the PPACA may disrupt the individual market in Iowa since the state has a number of small carriers that need time to adjust their business models in order to comply with the regulation. Iowa is requesting that the MLR be phased in: 60 percent in 2011, 70 percent in 2012, and 75 percent in 2013. To date, one state (Maine) has been granted an MLR waiver and seven additional states (Florida, Georgia, Iowa, Kentucky, Nevada, New Hampshire, and North Dakota) have submitted waiver requests and are awaiting responses.
Archive for the ‘iowa health insurance’ Category
Insurance Commissioner Susan Voss held a meeting with Iowa health insurance industry representatives on May 7 to discuss the implementation of a health care cost bill. Specifically,certain provisions require the Iowa Insurance Division to 1) hold a public hearing regarding any proposed rate increases that exceed national health care spending by at least 15 percent; and 2) convene a work group to consider ways to reduce the cost of health care and health insurance premiums. Commissioner Voss noted that the requirement for a hearing applies only to rates filed for approval — the individual market in Iowa. Also, there will be only one hearing per carrier even when the carrier makes filings for several products. Hearings are intended to collect comments from consumers; carriers are not expected to address comments or make a presentation. Commissioner Voss announced that the work group on reducing costs will not be convened until at least July 1, 2010. The Commissioner is requesting input from health insurance industry representatives and consumer groups on costs.
In the new health insurance reform law the states are permitted to create their own high risk pools, expand existing pools, or allow the federal government to create and administer the pools for them.
The following states will operate their own pools:
Alaska, Arkansas, California, Colorado, Connecticut, Illinois, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Missouri, Montana, New Hampshire, New Jersey, New
Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Dakota, Vermont, Washington, West Virginia, Wisconsin, and District of Columbia.
The following states will allow the federal government to create and manage the pools:
Alabama, Delaware, Georgia, Hawaii, Idaho, Indiana, Louisiana, Minnesota, Mississippi, Nebraska, Nevada, North Dakota, South Carolina, Tennessee, Texas, Virginia, and Wyoming.
Blue Cross Blue Shield Iowa health insurance rates are increasing an average of eighteen percent for 80,000 members in the state. These changes are scheduled to take effect April 1, 2010.
Iowa health insurance members will see a variety of increases ranging from 10 to 25 percent. This premium adjustment is occurring because of rising health care costs and increased usage.
The state Iowa health insurance program, Iowa Care can only be used at the University of Iowa Hospitals in Iowa City or at Broadlawns Medical Center in Polk County. The program allows for poor adults who don’t qualify for Medicaid to receive Iowa health insurance. Currently, there are 35,000 members and this is double what the state originally expected.
The question is whether or not to allow patients to receive routine care at clinics and emergency care at hospitals around the state. This will in turn double the costs and the state
simply cannot handle the extra expenditures.
Currently Iowa is having challenges meeting its current obligations with Hawk-I, another state Iowa health insurance program that is larger than Iowa
Care.
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