Texas Lawmakers Object

Some lawmakers in Texas want Insurance Commissioner Eleanor Kitzman to withdraw the state’s request for a waiver to the medical loss ratio (MLR) provision in the federal health insurance reform law.

State Rep. Lon Burnam and 30 other state representatives say the waiver would cost Texas policyholders an estimated $260 million. The MLR rule requires insurance companies to spend at least 80 percent of policy premium dollars on medical expenses rather than overhead. If insurers fail to comply, they must provide rebates to policyholders. In Texas, rebates would amount to approximately $350 per policyholder. Burnam says several health insurers in Texas are meeting the MLR requirement.