Sen. Franken, MN Commerce Commissioner Rothman to Outline Impact of Provision Resulting in Health Insurance Rebates for 123,000 Minnesotans This Year
August 03, 2012
For Immediate Release
WASHINGTON, D.C. —U.S. Sen. Al Franken and Minnesota Commerce Commissioner Mike Rothman will discuss the impact on Minnesota of a provision that Sen. Franken added to the nation's health reform law that has resulted in health insurance rebates for almost 13 million Americans – including 123,000 Minnesotans this year. Franken based his measure on a Minnesota law.
The provision—called medical loss ratio (MLR) or the "80/20 rule" — requires health insurers to spend at least 80 percent of what they collect in premiums on actual health services for their customers, as opposed to administrative costs, profits, marketing, or CEO salaries. Insurance companies that failed to meet that threshold had to issue rebates by this month, which this year will total $1.1 billion nationwide.
The Minnesota Commerce Department has tracked Medical Loss Ratio for the state's health insurance companies for more than15 years, and its work spurred Franken to add his medical loss ratio provision to the federal health care law as a way to hold down health costs for families and businesses.
U.S. Sen. Al Franken, Minnesota Commerce Commissioner Mike Rothman
Discuss health care provision that has resulted in insurance rebates for 123,000 Minnesotans