Maine gets health-reform exemption that Kentucky also wants

Maine has been granted an exemption that Kentucky is also seeking — one that will exclude it from being subject to the health reform's medical-care ratio rules.

The ratio requirement "mandates that at least 80 cents out of every premium dollar go toward patient care and quality improvement, rather than administrative costs and plan profits," Amednews.com's David Glendinning reports. Under the exemption, which has been granted until 2013, Maine insurers will only have to spend 65 percent of premiums on care.

The Department of Health and Human Services contends the Maine insurance market could not bear the impact of the new regulation. The state is only served by three major insurers, one of which threatened to pull out if the regulation stood. Kentucky, Florida, Nevada and New Hampshire have applied for similar exemptions. (Read more)