In a major win for consumers, the Department of Health and Human Services (HHS) has rejected Florida’s request to delay a new rule requiring health insurance companies to spend at least 80% of their customers’ premium dollars on actual medical bills.
Reacting to the ruling, Consumers Union Advocate Blake Hutson said,
“Today’s announcement means that Florida consumers will get the benefits of up to $145 million in health insurance rebates or lower rates on their policies. Floridians who struggle to access insurance on their own can now rest assured that insurers must provide value for premiums or rebate policyholders.”
In making the decision, HHS rejected the insurance industry’s claim that having to spend less than 20% of premiums on administration and profits would “destabilize” the insurance market for individuals who buy policies outside of an employer.
Consumers Union spoke out against Florida’s request to delay the rule and has worked to make sure that consumers’ voices are represented as the law’s provisions are implemented.