The Department of Health & Human Services has rejected North Dakota's waiver to be exempted from the medical loss ratio provision under the healthcare reform law, according to news report by The Hill.
Under the provision, healthcare insurers are required to spend 80-85 percent of every premium dollar on healthcare services, such as quality improvement efforts. However, a caveat in the provision allows states to obtain an exemption if the medical loss ratio threatens the individual and small group insurance market. HHS ruled North Dakota's three largest payors are already meeting or are close to meeting the threshold and would not leave the insurance market, according to the news report.
Read the report by The Hill on North Dakota's medical loss ratio waiver.