ihealthinsurancevirginia Chief Welcomes MLR Regulations
The CEO of ihealthinsurancevirginia, Alex Morgan, has welcomed the MLR regulations. He believes that the regulations will make the insurance sector efficient and trustworthy and thus bring in more customers.
- (1888PressRelease) October 30, 2010 - The CEO of ihealthinsurancevirginia.inc, a leading health insurance portal in the state, Alex Morgan, has welcomed the proposed federal regulation of the National Association of Insurance Commissioner that guarantees that a certain part of the premium is mandatorily spend on medical care.
After a meeting last Thursday, the Association has agreed to forward the proposal to the US Department of Health and Human Services, which will either adopt or modify recommendations.
According to the new regulations or the Medical Loss Regulations (MLR) as they are known, health carriers will have to spend at least 80% of the premium on healthcare services and medicines. 85% of the premium will be spent on medical services in case of large-group plans.
Alex Morgan, voicing a different opinion from other insurance companies, said, "MLR regulations will bring in more transparency to how premium dollars are used. Though initially it will largely mar our revenue, the regulations will ensure that the residents trust the insurance companies that the money is not going towards the profit of a company but towards providing better medical services to the citizens. In the long run, this trust will only bring in more customers to private insurers."
"The regulations will also force the insurance companies to be more efficient and cut down on unnecessary expense," he further added.
HHS Secretary Kathleen Sebelius applauded the insurance commissioners' vote and pledged to work quickly to get a new MLR regulation in place. Advocating the regulations, she said, "These recommendations are reasonable, achievable for insurers and will help to ensure insurance premiums are, for the most part, supporting health benefits for consumers. Not only do they ensure consumers receive better value for their health-care dollar, they recognize special circumstances in different markets to preserve market stability and employee coverage as we transition to the new marketplace in 2014."