Article: SOLVENCY REQUIREMENTS PORTEND HIGHER PREMIUMS.(managed health care plans, health insurance)

Employers should be on the lookout for higher health care premiums as states begin to implement more-rigorous solvency requirements for managed care firms.

So far only three states-Arkansas, Nebraska and Washington-have passed legislation adopting the Risk-Based Capital for Health Organizations Model Act promulgated by the National Assn. of Insurance Commissioners last year. Eventually, all states are predicted to follow suit, though one HMO official said they are expected to do so gradually enough to give plans time to prepare.

When states do adopt the standards, the new formula will apply not only to health maintenance organizations but also to all ...

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