REPUBLICANS WOULD ALLOW INSURERS TO SPEND LESS ON MEDICAL CARE Print
Friday, 22 October 2010 08:15

NEWS – CONGRESSMAN PETE STARK
239 Cannon House Office Building
Washington, DC 20515
(202) 225-5065
www.stark.house.gov

FOR IMMEDIATE RELEASE
Friday, October 22, 2010
Contact: Brian Cook, (202) 225-3202

Pledge Against America's Health
REPUBLICANS WOULD ALLOW INSURERS TO SPEND LESS ON MEDICAL CARE

WASHINGTON - The House Republican pledge unveiled last month would turn back the clock on health care progress. Rep. Pete Stark (D-CA), Chairman of the House Ways and Means Health Subcommittee, today criticized the Republican plan to eliminate a provision in health reform that requires health insurers to provide rebates to consumers if they spend less than 80 of their premium dollars on medical costs (called a medical loss ratio).

"Thanks to the health reform law, insurance companies now must spend at least a certain percent of premium dollars on medical care, and pay rebates to their enrollees if they fail to meet that standard," said Chairman Stark. "The Republican pledge would eliminate the medical loss ratio requirement and rebates for consumers -- letting health plans continue to escalate their own profits and executive pay rather than spend money on medical care."

Under the Affordable Care Act, insurance companies are required to report the percent of their enrollee's premium dollars that they spend on items other than health care costs – such as profits, bureaucracy, and CEO pay. If this amount exceeds a certain percentage (15 percent of premiums dollars for large group plans, 20 percent for small group and individual plans), then enrollees will receive rebates. These rebates begin next year.

Yesterday, the National Association of Insurance Commissioners approved a model regulation containing the definitions and methodologies for calculating medical loss ratios. Now, HHS will take this guidance and move forward with regulations in this arena.

Republicans would repeal health reform and allow insurers to continue escalating their spending on profits, CEO compensation, and red tape, rather than enhancing the value of insurance for consumers.


For additional information on how the Republican pledge is detrimental to America's health:
Block state aid to fight premium hikes: http://go.usa.gov/ay8
Gut efforts to promote prevention and wellness: http://go.usa.gov/aP7
Reinstate limits on coverage: http://go.usa.gov/aRL
End tax credits to help people afford health coverage: http://go.usa.gov/a5C
Repeal boost to primary care: http://go.usa.gov/a9G
Make it harder to appeal unfair denials by insurers: http://go.usa.gov/aKN
Balloon the deficit: http://go.usa.gov/aZo
Make more Americans face medical bankruptcy: http://go.usa.gov/aju
Repeal free preventive care: http://go.usa.gov/a4j
Reduce Medicare's solvency by 12 years: http://go.usa.gov/a10
Permit discrimination against people with pre-existing conditions: http://go.usa.gov/ach
End reinsurance program for early retirees: http://go.usa.gov/ac2
Shut down healthcare.gov: http://go.usa.gov/al8
Gut programs to fight Medicare fraud, waste, and abuse: http://go.usa.gov/xuT
Increase the uninsured by 29 million: http://go.usa.gov/xMU
Kick people out of new Pre-Existing Condition Insurance Plans: http://go.usa.gov/x60
Eliminate the small business tax credit: http://go.usa.gov/xsj
Re-open the Medicare Part D donut hole: http://go.usa.gov/xGe
Repeal investment in health IT: http://go.usa.gov/xGF

More to come...

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