FOR IMMEDIATE RELEASE

NAIC REVIEWS UCR RATES IN HEALTH INSURANCE
Public Hearing Included Input from Medical, Insurance and Consumer Groups

NATIONAL HARBOR, Md. (Sept. 28, 2009) — To better understand how usual, customary and reasonable (UCR) rates are determined and disclosed to consumers in health insurance, the National Association of Insurance Commissioners (NAIC) held a public hearing of the Health Insurance and Managed Care and Market Regulation and Consumer Affairs Committee during its Fall National Meeting.

The Sept. 24 hearing focused on:

• An explanation of what constitutes a UCR charge;
• An explanation of how insurers use UCR charges; and
• A discussion of how UCR practices (including balance billing) have affected consumers.

“This is a critically important consumer issue,” said Sandy Praeger, Chair of the Health Insurance & Managed Care Committee and Kansas Insurance Commissioner. “In particular, the practice of balance billing can have a substantial negative financial impact on consumers.”

Testimony was received from America’s Health Insurance Plans; the American Medical Association; Ellen Kuhn, Maryland Assistant Attorney General; Bonita A. Kallestad, Mid-Minnesota Legal Assistance; and Kevin Lucia of Georgetown University.

“These presentations provided a better sense of the current marketplace practices from multiple perspectives, including the company, physician and consumer perspectives,” said Kim Holland, Chair of the Market Regulation & Consumer Affairs Committee and Oklahoma Insurance Commissioner. “We will continue to work with all parties to arrive at a solution that assists consumers and respects the rights of insurers and physicians.”

Click HERE for a full agenda of the meeting and prepared testimony from participating parties.

Click HERE to listen to the hearing.

About the NAIC

Formed in 1871, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and five U.S. territories. The NAIC has three offices: Executive Office, Washington, D.C.; Central Office, Kansas City, Mo.; and Securities Valuation Office, New York City. The NAIC serves the needs of consumers and the industry, with an overriding objective of supporting state insurance regulators as they protect consumers and maintain the financial stability of the insurance marketplace. For more information, visit www.naic.org.

You are currently subscribed to the “NAIC News Release” electronic service. For information regarding this service, please contact the NAIC Communications Division, 2301 McGee Street, Kansas City, MO 64108, 816-783-8909.

To unsubscribe from NAIC Electronic Services, send a blank e-mail to
NAIC Opt Out services.