"New Documents Show Health Reform Law Isn’t Chasing Insurers Out Of Florida"
In November, Florida Insurance Commissioner Kevin McCarty (R-FL) asked the federal government for a waiver from the medical loss ratio provision of the Affordable Care Act (ACA), which requires insurers to spend between 80 and 85 percent of revenue directly on health care or rebate their customers. McCarty, like many critics of the law and its regulations, warned that the requirements would force insurers to flee the individual market and claimed that four insurers left the market after the ACA became law. But new documents released by Florida suggest that McCarty may have exaggerated the impact of the law. The documents show that just one insurer cited ACA as a factor in their withdrawal notice and one even explicitly stated that their withdrawal “is no way related to health care reform.” If McCarty secures a waiver, Florida consumers could lose $60 million in rebates.