State insurance commissioners unveil draft medical loss ratio

The National Association of State Insurance on Thursday unveiled its draft medical loss ratio regulation.

The group is inviting comment on the regulation by Oct. 4. The NAIC hopes to adopt the regulation later next month and send it to the Department of Health and Human Services for certification, as required by the healthcare reform law.

The law requires health plans in the small and individual market to spend a minimum of 80 percent of premiums on care (85 percent in the large-group market). Plans must offer rebates, starting in 2012, to their customers if they don't reach those minimums.

The regulation unveiled Thursday determines how those rebates will be calculated.