Minimum Loss Rations may be on the horizon for dental in California

May 6, 2014
Author: Webmaster
Posted In General

 

Minimum Loss Ratios may be on the horizon for dental insurers in California

Did you know that there is a bill currently proposed in California (AB 1962) that would require a minimum loss ratio (MLR) for dental insurance? AB 1962 proposes to extend the Affordable Care Act (ACA) MLR requirements onto dental health care service contracts and dental health insurance policies in California. Plans offering coverage in the large group market would be subject to a MLR of 85%, while the MLR for plans in the small group or individual market would be 80%. 

The bill was passed out of the Assembly Health Committee on April 8, and was sent on to the Assembly Appropriations Committee. The impact of the currently proposed bill on dental plans and consumers would be significant. As presently written, AB 1962 does not address how the MLR would be calculated.  Regardless, passage of AB 1962 could force carriers to make changes to dental plan designs, pricing, and administrative expenses.

The National Association of Dental Plans (NADP) is working in tandem with the California Association of Dental Plans (CADP) and other interested parties to attain a better resolution for plans and consumers than is currently presented in AB 1962.  In alerting you in regard to AB 1962, we are urging you to contact your elected representatives and tell them to oppose the bill.  - Assurant Employee Benefits.

You can use the link below to find your California representative:
http://www3.employeebenefitsonline.com/e/813/2014-05-06/2vj18z/647531175

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