Many states across the nation are looking to be granted a waiver to the new federal laws being placed on health care through the laws passed in 2010. Maine is officially the first state to receive the three- year hall pass delaying the effect of the laws until 2014. The laws will force health insurance companies to spend a minimum of 80 percent of their premium payments on patient care.
Being granted this waiver allows private insurance companies in Maine to only spend 65 percent of the money gathered from premiums on patient care. The remaining 35 percent can be spent on administrative costs or go directly to company profits. This waiver will go through the end of 2013 with the new laws being enacted at the first of the year in 2014.
Maine had a variety of reasons for trying to be granted this waiver. Many experts believe that there is a high likelihood that the new law will create stabilization problems in the insurance market and may even cause some to lose coverage. This waiver will allow the state to more slowly prepare for the change.
Filed Under: Health Insurance News
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