Commissioner Kevin McCarty Could Seek Waiver of Key Health Care Provision

Florida Insurance Commissioner Kevin McCarty will meet with health insurers Friday in what could be a first step toward pursuing a waiver of a controversial provision of the federal health-care legislation.

McCarty and more than 30 other insurance commissioners from other states met with White House officials Wednesday to discuss the implementation of the Affordable Care Act. McCarty expressed his concern about the medial-loss ratio, or MLR provision of the law, which states that insurers must spend 80 percent of their expenses on actual medical care.

Several insurers in Florida and across the nation have already threatened to increase rates or stop issuing policies in certain markets.

McCarty had sent a letter earlier this year to Health and Human Services Secretary Kathleen Sebelius asking for clarification on the MLR issue and held public hearings during which insurers signaled the potential disruption to the markets the MLR would cause.

But during the meeting Wednesday, federal officials told McCarty more specific data and information on the potential effect on the insurance markets must be provided before any waiver is given. Two other states have already applied for the waiver with HHS.