The federal Government has rejected a request by the State to reduce the amount of the premium that the insurer should be devoted to health care.
The decision means that as of last year, individual health insurance providers and smaller groups in Kansas must spend at least 80 per cent of every premium dollar on health and health-enhancing activities or pay rebates to their members. U.S. Department of Health and Human Services estimates that Coventry, Humana, Golden Rule time and may have to give rebates this year.
The requirement is part of the federal affordable care Act. The federal Government allow countries who think rules will disrupt the stability of their individual market insurers to request a reduction in requirements, and Kansas felt compelled to do so if the rules would prove dangerous, State Insurance Commissioner Sandy Praeger said.