Feds OK Later Cap On North Carolina Insurer Profits

Federal regulators are allowing North Carolina insurers a one-year delay in meeting a requirement that more of each premium dollar goes toward medical services rather than overhead and bonuses.

The U.S. Department of Health and Human Services said Thursday it's allowing North Carolina's highly concentrated market of just nine insurers some leeway to keep from driving some out of the state. Blue Cross Blue Shield of North Carolina has more than 80 percent of the market for policies sold to individuals and small businesses.

The federal agency says its delay in the requirement in the federal health overhaul law is to give smaller issuers time to compete with Blue Cross without the pressure of cutting their marketing expenses to meet the standard for what's called the medical-loss ratio.

(Copyright 2012 by The Associated Press. All Rights Reserved.)

You must be logged in to post comments.

Password (case sensitive):
Remember Me:

Read Comments

Comments are posted from viewers like you and do not always reflect the views of this station.
  • by Vince Location: Washington on Feb 16, 2012 at 02:07 PM
    Please let out-of-state insurers compete for policies here in NC. Once that happens you will begin to see the cost of healthcare go down in our state.
  • by MDS on Feb 16, 2012 at 01:43 PM
    But that means all negative effects will be delayed UNTIL AFTER THE ELECTION
    • reply
      by Wharf Rat on Feb 16, 2012 at 03:38 PM in reply to MDS
      Of course.
      • reply
        by Anonymous on Feb 17, 2012 at 07:34 AM in reply to Wharf Rat
        Not to mention it's just another way of saying:"We know you have your hand in the cookie jar, now you only have a year to get it out."

275 E. Arlington Blvd. Greenville, NC 27858 252-439-7777
Copyright © 2002-2016 - Designed by Gray Digital Media - Powered by Clickability 139466283 - witn.com/a?a=139466283
Gray Television, Inc.