Texas Congressional Democrats Urge Rejection of State Effort to Delay Vital Health Insurance Protections for Consumers
December 21, 2011
Washington—Texas Democratic Congressional Democrats, led by Chair U.S. Rep. Lloyd Doggett, urged the U.S. Department of Health and Human Services to reject an attempt by the Texas Department of Insurance to delay implementation of the new Medical Loss Ratio rules, which require health insurance companies to spend 80% of premium dollars on health care services and quality improvements, rather than on overhead, marketing, advertising, or executive bonuses.
If insurers fail to comply with these standards, they must provide rebates to policyholders. If the State request is granted,
“Texas Department of Insurance’s unjustified request is nothing more than an early Christmas gift from Governor Perry’s allies to insurance companies.
[Their letter follows below]
December 21, 2011
The Honorable Kathleen Sebelius
Dear Secretary Sebelius:
We write to express our hope that you will deny Texas Department of Insurance’s (DOI) request to delay full implementation of the new medical loss ratio (MLR) rules, and ensure that Texans are not denied the full benefits of the Affordable Care Act (ACA). Once again, some in
One of the successes in our health insurance reform efforts is that starting in 2011, the ACA requires insurance companies to spend at least 80 percent of premium dollars on health care services and quality improvements, rather than on overhead, marketing, advertising, or bonuses. If insurers fail to comply with these standards, they must provide rebates to policyholders. This important provision of the ACA makes crucial strides toward holding insurance companies accountable for how they spend consumers’ premium dollars and places downward pressure on insurance premiums.
Insurance companies do not want this accountability and the Texas DOI is intent on helping them evade it. If the
Not only is this bad policy, but
As we move forward with implementation of the health insurance reform in
Please deny this transparent request to put insurance company profits over patients.