News Headlines Article

States Ask for Phase-In on Insurance Change
New York Times

State insurance regulators told the White House on Wednesday that health insurance markets in some states would be disrupted unless President Obama gave insurers a temporary dispensation from one major provision of the new health care law. The provision requires insurance companies to spend at least 80 cents of every premium dollar on medical care, rather than administrative expenses, executive salaries and profits. If insurers do not meet the requirement in 2011, they will have to pay rebates to consumers in 2012.