The latest rollout of the federal health care overhaul offers
consumers a rebate if their insurers spend too little on actual medical
care and too much on administrative costs. Easy To Insure ME has the answers
But Floridians may miss out on the rebates that will start in 2012.
Pressed by the insurance industry, state regulators will soon ask the federal government for a waiver from the requirements, which begin Jan. 1.
The Florida Office of Insurance Regulation confirmed Tuesday it will request a reprieve until 2014, when the health care law's coverage guarantees kick in.
In a written statement, the office said enforcing profit limits in 2011 could "disrupt" the insurance market in Florida, where 4 million people are uninsured. Commissioner Kevin McCarty was not available for questions.
The state already is suing to overturn the health care law.
The new requirements are supposed to help increase the value of coverage for consumers and make health insurers "more accountable" by publicly reporting spending and premiums, federal health officials say.
Consumer advocates, such as Consumers Union, publisher of Consumer Reports, largely consider the requirements a win. The idea of a waiver — similar moves are afoot in Georgia, Iowa, Maine and South Carolina — got a tepid response.
"We generally feel the industry does cry wolf," said Walt Dartland, executive director of the Consumer Federation of the Southeast. "Our position is generally when we have an issue like this, we're against the waiver — you've got to prove that."
Essentially, the rules require insurers that offer small group and individual health plans must spend 80 percent of their revenue on care outside administrative costs. Large group insurers — plans covering 50 or more people — must spend 85 percent of their revenues on care.
But Floridians may miss out on the rebates that will start in 2012.
Pressed by the insurance industry, state regulators will soon ask the federal government for a waiver from the requirements, which begin Jan. 1.
The Florida Office of Insurance Regulation confirmed Tuesday it will request a reprieve until 2014, when the health care law's coverage guarantees kick in.
In a written statement, the office said enforcing profit limits in 2011 could "disrupt" the insurance market in Florida, where 4 million people are uninsured. Commissioner Kevin McCarty was not available for questions.
The state already is suing to overturn the health care law.
The new requirements are supposed to help increase the value of coverage for consumers and make health insurers "more accountable" by publicly reporting spending and premiums, federal health officials say.
Consumer advocates, such as Consumers Union, publisher of Consumer Reports, largely consider the requirements a win. The idea of a waiver — similar moves are afoot in Georgia, Iowa, Maine and South Carolina — got a tepid response.
"We generally feel the industry does cry wolf," said Walt Dartland, executive director of the Consumer Federation of the Southeast. "Our position is generally when we have an issue like this, we're against the waiver — you've got to prove that."
Essentially, the rules require insurers that offer small group and individual health plans must spend 80 percent of their revenue on care outside administrative costs. Large group insurers — plans covering 50 or more people — must spend 85 percent of their revenues on care.
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