Under the new regulations stipulated in HB439, dental plans will be required to file an annual dental loss ratio report with the Department of Commerce and Insurance. This report must be submitted by March 1 each year and will detail the previous year's expenditures on dental services. The department has also been mandated to publish this information for public accessibility, allowing consumers to have better insight into the financial practices of their dental plans.
Summary
House Bill 439 aims to introduce several provisions related to dental plans in Missouri by amending Chapter 354 of the Revised Statutes. A key focus of this bill is the establishment of a 'dental loss ratio', which is defined as the percentage of premiums collected that are spent on actual patient care as opposed to administrative and overhead costs. The bill includes specific guidelines on how the dental loss ratio is to be calculated, clearly delineating allowable expenses from the numerator and denominator to ensure transparency in dental plan operations.
Contention
A significant point of contention in the discussions surrounding HB439 is the stipulation that if a dental plan's loss ratio is found to be less than 85%, the plan must provide an annual rebate to each enrollee. Critics of this provision argue that the threshold set for rebates could potentially lead to increased financial strain on dental plans, particularly those operating with narrow profit margins. Proponents believe that this requirement will foster more conscientious spending within insurance companies and ensure that a higher percentage of premiums are reverted into patient care rather than administrative expenses.