The Wall Street Journal (12/3, Radnofsky, Subscription Publication) reports HHS altered a component of the new healthcare law that requires insurance companies to spend a certain percentage of income from premiums on medical care. Providers not doing so must issue refunds to consumers. On Friday, HHS revised the rule to state that such refunds would be tax-free.
USA Today (12/2, Kennedy) reported that, according to HHS officials, "the rule will help keep insurers accountable, as well as ensuring that consumers know how much of their premiums go toward medical care rather than profit and overhead." The piece quotes CMS Acting Administrator Marilyn Tavenner, who said, "This will bring costs down and give insurance companies the incentive to focus on what matters for patients - high quality health care."
CQ (12/3, Reichard, Subscription Publication) reports, "The regulations also propose that insurers will have to send notices to consumers showing not just the amount of any rebate but also what the medical loss ratio, or MLR, means and how it has improved under the health care law (PL 111-148, PL 111-152). And the regulations remind insurers that they can't exclude broker and agents' fees when adding up administrative expenses."