Insurance regulators miss early deadline on premium spending rules

Washington Post, June 2, 2010

A national assembly of state insurance regulators, which is helping the federal government translate the healthcare reform law into more specific rules, said it was unable to meet a June 1 deadline for standards meant to ensure that consumers get value for their premium dollars. At issue is a requirement that insurers devote at least 80%-85% of premiums to the payment of medical claims and other expenses that improve healthcare. The requirement aims to limit spending on items such as marketing, administrative overhead, executive pay, and dividends for shareholders.


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