News Headlines Article

Emergency regulation gives California teeth to enforce health insurance payouts
Sacramento Bee

Insurance Commissioner Dave Jones has won approval for an emergency regulation that gives him authority to enforce a new federal rule requiring health insurers to spend at least 80 percent of premiums on medical care.

Until now, state regulators were limited to enforcing a 70 percent “medical-loss ratio.” But as of Jan. 1, California’s standard has been superceded by the federal health care law that requires insurers to comply with the higher level.