Iowa Health Insurance Medical Loss Ratio

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.

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