Do you know the Medical Loss Ratio
Posted by Jamie Martens on Tue, Nov 09, 2010 @ 01:18 PM
HR & Benefits Update: Do you know how the Medical Loss Ratio ruling of health care reform WILL impact your business?
Part of the health care reform legislation that goes into effect on January 2, 2011, is a sub section that requires insurance carriers to prove that a fixed percentage of premium dollars are used to pay medical claims. This ruling leaves the carriers with a defined amount of premium that can be allocated to administrative services, including client customer service. Your consultant’s commissions will be affected by this ruling. If the insurance companies reduce their internal customer service staff and your consultants commissions are reduced, what happens to your employees that need assistance with insurance issues? Many consultants hire internal agency staff to help you and your employees. Will reduced commissions lead to the termination of these employees? Are you willing to begin to pay a fee to your consultant to help cover the cost associated with this service? What planning or discussion have you had with your consultant concerning this issue?