Rockefeller, Franken on Key Provision of Health Care Bill

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Insurance Company Regulations Included in Merged Senate Bill

Washington, D.C. -- Nov 19, 2009 – U.S. Senators John Rockefeller (D-W.Va.) and Al Franken (D-Minn.) today praised the inclusion of a key cost-saving insurance company regulation that they fought to see included in the Senate health care reform bill.

The bill released last night contains provisions that require insurance companies to spend a set portion of their insurance premium dollars on actual health care services, as opposed to marketing campaigns, CEO salaries, and administrative costs. This portion of the dollar, known in the industry as “medical loss ratio,” has been set at 80 cents for group insurance plans and 75 cents for individual plans.

“It is time for health insurance companies to spend the money they collect from consumers on actual medical care, not executive salaries and fancy office buildings,” said Sen. Rockefeller, Chairman of the Senate Finance Subcommittee on Health Care. “This is a common-sense solution in a strong bill, and it says that we are serious about keeping health insurance companies honest and protecting consumers first.”

“Minnesota families need to know that when they send their health insurance premium dollars to their insurance companies, that money is being spent on making and keeping them healthy – not on bloated profits, bonuses, or advertising,” said Sen. Franken. “This was a common-sense solution I was proud to fight for and I’m thrilled to see it included in our Senate bill. It’s going to go a long way toward improving care and holding insurance companies accountable.”

Source: Senator Al Franken