Feds Reject Kansas Health Care Waiver

Thu, January 05, 2012

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Associated Press / Briana O’Higgins

Federal health care regulators have rejected a request from Kansas for a waiver of regulations on the amount of money insurance companies must earmark for health care.

The Department of Health and Human Services Wednesday denied Kansas’ request regarding the amount of premiums that individual and small-group insurance companies must spend on health care and improving health care.

A provision of the 2010 federal health care act requires companies to spend 80 cents of every dollar on health care activities. The law requires companies that fail to meet that mark
to make rebates to policyholders.

Kansas Insurance Commissioner Sandy Praeger said the state sought the adjustment to prevent damage to the insurance market.

Four companies may have to provide rebates this year.