MORE THAN YOU WANTED TO KNOW ABOUT THE MLR PROVISION

PPACA's medical loss ratio rules, to be implemented effective January 1, 2011, are causing more current heartburn to insurers and employers than any other aspect of health care reform. Previous REFORM UPDATE posts have discussed some of the issues involved, with new wrinkles becoming apparent almost every week.

The release of draft MLR regulations by the National Association of Insurance Commissioners last week eliminated much of the uncertainty, especially concerning the inclusion or exclusion of federal and state taxes from the MLR computation. With the NAIC drfat in hand, and assuming that it will be accepted by HHS Secretary Kathleen Sebelius, it's become a lot easier for insurers and employers to figure out how they may be affected, and what kind of strategic response is most approriate.

BNA's Pension and Benefits Daily asked REFORM UPDATE Editor Roger Collier to provide a detailed review of the issues facing employers and insurers. It was published on October 6 as a BNA Insight article and is available to BNA subscribers.