North Dakota becomes the first state to be denied a waiver.
The federal Department of Health and Human Services has denied North Dakota's request to be exempt from a portion of the new health care law.North Dakota is among the states with the fewest number of health insurers and was hoping a waiver would help attract more insurers, but this won't happen.
North Dakota became the first state Friday to be denied an adjustment to the law's medical loss ratio requirements, which state that insurers must spend at least 80 percent of premiums on covering claims, using the other 20 percent to cover administrative costs. Those not meeting the standards must return the money to consumers as a rebate.
HHS will start denying all waiver requests in September, 2011. It looks like HHS is starting now. Was North Dakota just too late getting its waiver request in or is the state just too red?
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