MLR Waiver Bill Would Shift Power to States

Margaret Dick Tocknell, for HealthLeaders Media , September 20, 2012

The bill is expected to easily pass through the committee, although an effort to strip out the waiver provision is expected, according to Tim Jost, a consumer representative on the National Association of Insurance Commissioners and a law professor at Washington & Lee University.

It is doubtful that the House calendar will allow for a full vote on HR 1206 before the November elections.

Neither Rep. Mike Rogers (R-MI) nor Rep. John Barrow (D-GA), the primary sponsors of HR 1206, responded to requests for information.

Margaret Dick Tocknell is a reporter/editor with HealthLeaders Media.
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3 comments on "MLR Waiver Bill Would Shift Power to States"

E. Thomas (9/20/2012 at 11:53 AM)
Two points. First, if broker and agent fees and commissions are not included as administrative expenses (the 20% bucket), surely they cannot be considerd to be related to direct patient care and/or improving the quality of care (the 80% bucket). Second, if future legislation allows the sale of health insurance across state lines, then moving the MLR waiver decision to the state level could lead to insurers basing operations in MLR friendly states.

krockholt (9/20/2012 at 11:24 AM)
Makes a lot of sense to shift power back to the states, especially with such an unpopular act. I anticipate Romney winning the election and repealing anyway.

Donald R. First (9/20/2012 at 10:22 AM)
I haven't read the bill as it stands now, but I read an earlier version. Th e ability to give States the right to change the MLR is really silly and counter Productive. When did paying commissions to broker become a state Mandate. Take a dood solid look at the texas filing last year and you will see thay had no idea what plans were being marketed or what was realistic. The MLR calculation has plenty of fat. I would advise soe tweeks. I don't think groups of 250 or more should be limited by the MLR and I would excuse them, and I would use a lower MLR on HDHP plans.




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