MLR Testimony Heard by House Subcommittee
Steve Larsen, deputy administrator and director of the center for consumer information and insurance oversight at the Centers for Medicare & Medicaid Services was expected to testify but instead submitted written comments.
He noted that the MLR regulations incorporate recommendations by the National Association of Insurance Commissioners, including methodologies for calculating MLR and the reporting format to be used by the industry. "The process included significant input from the public, states, and other key stakeholders, and was widely praised for its openness and transparency. The results of that process were approved unanimously by the NAIC Commissioners."
Larsen said state flexibility is already built into the MLR process because the ACA allows for a temporary adjustment to the individual market MLR standard if a state requests it and demonstrates that the 80% MLR standard may destabilize its individual insurance market. He added that the process and criteria for evaluating state requests for adjustments were based on NAIC recommendations.
No action was taken by the committee.
Margaret Dick Tocknell is a reporter/editor with HealthLeaders Media.
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