The enactment of HB2752 will require dental benefit plans to file annual reports detailing their loss ratios to the Kansas insurance department. These reports must be organized by market and product type, ensuring transparency and accountability regarding how premium revenues are allocated. If a dental benefit plan fails to meet the required loss ratio percentage, it will be obligated to issue rebates to the insureds or plan administrators, helping to keep costs fair and transparent for consumers.
Summary
House Bill 2752, known as the Dental Loss Ratio Act, seeks to establish regulations surrounding dental benefit plans in the state of Kansas. The primary aim of the bill is to ensure that a specified percentage of premiums collected by dental benefit plans is utilized for actual patient care instead of administrative expenses or profits. Specifically, the bill proposes that the annual dental loss ratio should be maintained at a minimum of 85%. This means that for every dollar collected in premiums, at least 85 cents should be spent on clinical dental services for insureds.
Conclusion
HB2752 is set to take effect on July 1, 2025, which allows time for dental benefit plans to adjust their financial structures to comply with the new regulations. Overall, this legislation aims to promote better transparency and ensure that dental care funding adequately prioritizes patient care, which has been a significant concern among dental associations and advocates in Kansas.
Contention
Although the bill has received broad support from stakeholders in the dental community, some points of contention could arise around its implementation and oversight. Questions may be raised regarding the effectiveness of the Kansas insurance department in monitoring and enforcing compliance among dental benefit plans. Furthermore, concerns may emerge regarding the potential administrative burden placed on these plans when filing the required reports, impacting their operational efficiency.
Dental benefit plans; establishing formula for medical loss ratio; exempting certain dental plans; requiring annual rebate for certain plan years by certain plans. Effective date.
Dental benefit plans; creating the Medical Loss Ratios for Dental (DLR) Health Care Services Plans Act; definitions; formula; reporting to Insurance Department; data verification; rebate calculation; rates; effective date.