UNDATED (WSAU) The Obama White House said no yesterday to letting Wisconsin phase-in a new federal rule that requires health insurers to spend 80-percent of their premium revenues on actual care. The state Insurance Commissioner’s office said the new rule would force insurers to leave the Wisconsin market – and about 180,000 people who buy their own coverage would be hurt as a result.
But federal officials said the state did not provide enough data to prove its claim. In fact, Washington said 12-of-their-15 insurers that provide individual coverage in Wisconsin are already spending close 80-percent of their premiums on care – or close to it. And all but one of the other three companies were expected to meet that standard last year.
The Madison group A-B-C for Health praised the ruling, calling it a “win for Wisconsin consumers.” Bobby Peterson of the A-B-C group said the state was trying to protect insurers who offer the least value. But state Insurance Commissioner Ted Nickel called the decision “puzzling.” And he said four companies that insure individuals had already left the state’s marketplace.
