Bill introduced to increase Medigap MLR

The AARP endorsed the measure, introduced in both the House and Senate, which in 2014 would require Medigap insurers to spend 85 percent of every premium dollar in the group market (80 percent in the individual market) on medical care.

Modern Healthcare: Legislation Aims To Boost Medigap MLR
Sen. John Kerry (D-Mass.) and Rep. Pete Stark (D-Calif.) introduced bicameral legislation today that would require Medigap insurance plans to spend at least 85 percent of every premium dollar on medical care in the group market and 80 percent in the individual market. Current law upholds the medical-loss ratio provisions outlined in the Medigap Medical Loss Ratio Improvement Act of 1990, which required Medigap insurers to spend 75 percent of premiums on medical care in the group market and 65 percent in the individual marketplace. This bill — which retains the name of the original legislation — would become effective in 2014 to give insurers some time to adjust to the change (Zigmond, 7/26).

The Hill: AARP Backs Bill To Extend New Rules On Insurers' Spending
AARP endorsed a bill Tuesday that would impose tighter limits on supplemental health plans that are often sold under the AARP brand. The seniors' lobby backed a bill that would extend the health care law's medical loss ratio (MLR) provisions to Medigap plans. The new law requires traditional plans to spend 80 to 85 percent of their premiums on medical care. Medigap policies are subject to a lower limit (Baker, 7/26).

CQ HealthBeat: Democrats Wants New MLR Standards To Apply To Medigap Policies
Two Democratic lawmakers on Tuesday introduced bills in the House and Senate that would require Medigap plans to meet the same medical loss ratio standards as private insurers. The measures would require Medigap plans to use more of each premium dollar on medical care and less on administrative costs than they are required to do now (Bunis, 7/26).

In other legislative news, the House Energy and Commerce Committee backed legislation Tuesday that would continue to fund payments for children's hospitals' graduate medical education.

Modern Healthcare: House Panel OKs Bill To Extend Funding For Children's Hospitals GME
Members of the House Energy and Commerce Subcommittee on Health approved three bills on Tuesday, including legislation to continue funding for the Children's Hospitals Graduate Medical Education Payment Program (Zigmond, 7/26).