Group signs off on dental loss ratio model legislation

The National Council of Insurance Legislators' executive committee provided final approval for model legislation for a dental loss ratio.

The Medical Loss Ratio for Health Care Services Plans Model Act creates transparency standards for dental insurance that are similar to those for medical plans under the Affordable Care Act, according to an April 15 news release from the American Dental Association.

A dental loss ratio establishes a certain percentage of premium dollars that must be spent on patient care. If insurance companies do not meet the threshold, they must refund part of the premium. 

Some states, including Ohio, Utah and Tennessee, have said a model legislation would make them more likely to address a dental loss ratio in the future. 

The ADA also is pushing for a dental loss ratio at the federal level, the release said. 

The model legislation was initially adopted in January, but it was met with pushback and criticism by the Texas Dentists for Medicaid Reform. 

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