Grant targets health insurance premium hikes
The state of Maine is receiving a $1 million grant from the federal government to help rein in health insurance premiums.
The money, from the U.S. Department of Health and Human Services via the Affordable Care Act, will fund a number of state initiatives to strengthen oversight of premium raises and increase transparency, according to a press release from DHHS. The state plans to use the funding to improve and expand the scope of its review process by ensuring carriers adequately meet average medical loss ratios, or the percentage of premium dollars spent on medical care instead of overhead or profits, and meet all legal requirements. The state plans to collect more information on small group rates and establish benchmarks, as well as upgrade its technology to improve efficiency in the review process. The funding will also be used for consumer outreach by making filing information easily accessible on the state's website and encouraging consumers to participate in rate hearings.
Maine was one of 46 states to receive a total of $250 million over five years through the Affordable Care Act, which will also require insurers to spend at least 80% of premium dollars on medical services. Last month, Maine Insurance Superintendent Mila Kofman asked the Obama administration to waive that provision, which is an increase over Maine's 65%, saying it could drive away one of the state's individual market insurance providers. DHHS has not yet responded to the request, according to the Bangor Daily News.
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