Ritter Insurance Marketing, Craig Ritter

New Health Care Reform Provisions Going into Effect on January 1st

There are a number of provisions from the PPACA law (Health Care Reform) that will go into effect on January 1st:

  • Mandated Minimum Loss Ratios – Insurance companies will need to prove that they spend at least 80% of premiums (for Individual Health and Small Group Health Insurance) on “activities that improve care”.  NAIC has issued guidance for insurance companies on what this means, but, for the most part, these amounts are limited to payment for claims on the policy.
  • Changes to Medicare – Adds preventative benefit and 50% discount on certain Brand Name drugs in the Doughnut Hole and a 7% discount on Generic drugs in the Doughnut Hole.

The full story is covered by Insurance Broadcasting here.

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