The American Dental Association has requested changes to the National Council of Insurance Legislators’ model legislation for dental loss ratios.
Six notes:
1. NCOIL adopted model legislation for a dental loss ratio, with language approved by the American Dental Association and the National Association of Dental Plans, in January 2024.
2. The model provides a base for the introduction of DLR bills while still giving each state the ability to tailor the legislation.
3. The ADA is requesting changes to the model legislation after updating its own policy, with the goal of increasing insurer transparency and directing more premium dollars toward patient care, according to a July 16 news release.
4. The ADA’s updated policy includes clearer criteria for what expenses should be included and excluded in DLR calculations. It also excludes charitable community benefit expenditures from DLR calculations.
5. ADA is also calling for agent and broker commissions to be removed from DLR calculations.
6. The ADA requested that NCOIL’s model legislation be revised before the scheduled review in 2029.
