Consumers Union, the policy and advocacy arm of our benevolent benefactors at Consumer Reports, is urging the Department of Health and Human Services not to delay a consumer-friendly health insurance provision in Wisconsin. The delay could result in a loss of over $13 million rebates or lower insurance premiums to residents.

The provision, known as the Medical Loss Ratio, is under fire in a plan proposed by the Wisconsin Office of the Commissioner of Insurance. That plan would push back consumer protections that say health insurers have to spend at least 80 cents of each insurance premium dollar on actual health care or rebate policyholders in the difference.

“This is a blatant attempt to keep business as usual for low value health insurers” said Laurie Sobel, Senior Attorney for Consumers Union. “Families across Wisconsin are struggling to afford coverage while insurers waste precious health care dollars on overhead and profits. What Wisconsin residents need is a health insurance system that keeps costs down and lifts service up, and this new rule provides that level playing field.”

The MLR was created as part of the federal health reform law, and seeks to increase values for individuals or small businesses who purchase coverage on their own.

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