Dental insurance; medical loss ratio
The bill imposes stricter reporting requirements and accountability measures on dental insurers by requiring them to file MLR reports organized by market and product type. If the medical loss ratio for a large group market dental service corporation is less than 85% or for a small group market is less than 80%, they are required to issue rebates to subscribers. This aims to enhance the transparency and efficiency of dental insurance practices, potentially leading to decreased costs for consumers and better coverage options in the state.
SB1302 is a legislative bill introduced in Arizona that amends several sections of the Arizona Revised Statutes related to dental insurance, specifically focusing on the medical loss ratio (MLR) requirements for dental service corporations and disability insurers. These amendments are intended to ensure that a significant portion of premium revenue collected by insurers is spent on dental services and improving the quality of care. The bill mandates that dental service corporations must report their medical loss ratios annually and outlines the circumstances under which they must issue rebates to subscribers, particularly when their ratios fall below specified thresholds.
A notable point of contention surrounding SB1302 revolves around concerns from various stakeholders about the bill's impact on the overall costs of dental insurance and the adequacy of coverage. Some proponents argue that enforcing a minimum medical loss ratio will benefit consumers by ensuring more of their premium dollars are directed towards actual care rather than administrative expenses. Critics, however, have expressed concerns that such regulations might lead insurers to increase premiums or reduce benefits in an effort to comply with the new standards, ultimately burdening consumers.