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Article: SOLVENCY REQUIREMENTS PORTEND HIGHER PREMIUMS.(managed health care plans, health insurance)
- Article from:
- Business Insurance
- Article date:
- August 2, 1999
- Author:
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Copyright informationCOPYRIGHT 1999 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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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 ...