GAO: New rules leading to lower healthcare premiums, cuts to agents' fees

[flpoljunkie]

GAO: New rules leading to lower healthcare premiums, cuts to agents' fees

By Sam Baker
08/29/11

A controversial piece of the healthcare reform law is beginning to save consumers money but could also give them fewer plans to choose from, the Government Accountability Office (GAO) said Monday.

The GAO interviewed insurance companies and regulators about the early impact of a provision that governs how insurance companies spend their money. It requires plans to spend 80 or 85 percent of their premiums on medical costs — a calculation known as the medical loss ratio (MLR). Companies that miss the minimum MLR will have to pay rebates to their customers.

According to GAO, some insurers are decreasing premiums or leaving their rates unchanged in order to comply with the MLR requirements. Three companies told GAO that premiums will either fall next year or increase by a smaller amount than they would have without the MLR.

more...

http://thehill.com/blogs/healthwatch/health-reform-implementation/178633-gao-new-mlr-rules-leading-to-lower-premiums-cuts-in-agents-fees?wpisrc=nl_wonk

[young but wise]

1. K&R.

[karynnj]

2. Great news - now you see exactly who has a vested interest in repealing the law

Regulations like this "hurt" the insurance companies. As to the fewer choices, it seems the choices that remain are better choices. The eliminated ones would be those where too small a part of the cost benefits those paying for it.

[tridim]

3. Spin it all away usual suspects.

Good luck.