Feds reject request to exempt health insurers

MADISON, Wis. — The federal government has rejected Wisconsin’s request to phase in a requirement that health insurers spent 80 cents of every dollar in premiums on medical care. It’s one of the provisions of the Obama administration’s health care reform.

Gov. Scott Walker’s administration wanted to implement the change over three years for health insurance sold to individuals and families. The state insurance commissioner contends companies might be forced to leave the Wisconsin market if the so-called 80-20 rule is immediately implemented.

Federal officials have rejected exemptions for 10 states, granted modified adjustments to six states and approved one request for a waiver.

The Journal Sentinel (http://bit.ly/A9KqzD ) says the U.S. Department of Health and Human Services found that the state did not provide sufficient data to support its contention.

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Information from: Milwaukee Journal Sentinel, http://www.jsonline.com