Texas Rejected Waiver

January 28, 2012 by staff 

Texas Rejected Waiver, The Health and Human Services Department on Friday denied Texas’s request for an adjustment to new rules under the healthcare reform law that govern insurers’ spending. The law says policies sold to individuals must spend 80 percent of their premiums on medical costs, leaving the other 20 percent for administrative costs and profit. HHS denied Texas’s request to phase in that standard over three years. … HHS has now denied nine states’ requests for adjustments, and approved six (Baker, 1/27).

Bloomberg Businessweek: Texas Insurers Won’t Get Reprieve From Health-Care Law Rule
Texas Republican Governor Rick Perry’s administration had asked the U.S. to let plans led by Blue Cross and Blue Shield of Texas spend less than 80 percent of their premium revenue on patient care. … Thirty-four companies sell policies to individuals in Texas. Eight carriers who control 85 percent of the individual market have said they’ll continue selling after the profit limit is enforced, officials with the U.S. Health and Human Services Department said in denying the request. … Two states, Wisconsin and North Carolina, have requests outstanding (Wayne, 1/27).

The Associated Press: Federal Government Rejects Texas Insurance Waiver
Texas health insurers will likely pay out $476 million in rebates over the next three years, said Gary Cohen, acting director of oversight at [HHS]. … The Texas Department of Insurance issued a statement rejecting the federal agency’s conclusions, saying it did not give insurance companies time to adjust their business models to new rule. … The states granted a waiver include four with Republican governors: Maine, Nevada, Georgia and Iowa. The states denied include one with a Democratic governor, Delaware. Florida was denied a waiver (Tomlinson, 1/27).

Report to Team

Please feel free to send if you have any questions regarding this post , you can contact on

Disclaimer: The views expressed on this site are that of the authors and not necessarily that of U.S.S.POST.


Comments are closed.