Healthcare Reform Update

Posted on: August 22nd, 2011 by Kristine No Comments

Last week it was decided that the ruling as to whether an Individual Health Insurance Mandate will be required for all citizens by 2014, has most likely been moved to the Supreme Court to make a decision next session.

The past few months Arizona has been meeting as a committee run by Don Hughes who was appointed by our Governor, Jan Brewer, to move forward with offering a Statewide Exchange instead of joining as part of the Federal Exchange. They are still waiting for the HHS requirements to see how to best set up the exchange, but currently they are researching several options. There are about 20 committee members ranging from Brokers, Insurance Companies and Department of Insurance Representatives. The Exchange will need to be set up by October 2013 and prepared operationally for January 2014 sales. This will affect both group and individual sales.

The Medical Loss Ratio will be required for Insurance Companies to report to the clients that they insure to see if any Rebates are owed to the client if their claims are below the loss ratio. This reporting will be required starting in 2011 and if any Rebating is owed to the client the checks must be distributed by August 1 of the following year. At that point the client will be required to reimburse their employees based on the amount of contributions the employer and employee contribute. You will be receiving more information on this from your particular carrier.

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