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BOSTON (WBZ NewsRadio) — It looks like insurers that operate within Massachusetts will have to refund excess dental insurance premiums, as voters overwhelmingly opted for "yes," on Question Two on the state ballot. The Associated Press is projecting "yes" will prevail as of Wednesday morning.
The proposal targets dental insurers with a medical loss ratio of less than 83%.
An insurer's medical loss ratio is the ratio of premium money they spend paying for their customers medical expenses, versus what they spend on other things like marketing. Under this new law, dental insurance companies will need to spend at least 83% of the money they get from premiums on customer care, or be forced to refund the difference.
The Commissioner of the Massachusetts Division of Insurance would still have the authority to adjust the refunds.
The proposed law will make insurers submit their current and projected medical loss ratio, administrative expenses, and other finance details to the state every year.
Those who argued in favor of the law, such as the Committee on Dental Insurance Quality, said a "yes" vote would ensure better coverage and instill an expansion to consumer protection laws already in place for medical insurance companies. The organization claims the law would keep a lid on insurers inflating the salaries of their executives.
The Committee To Protect Public Access To Quality Dental Care was against the proposal, and claimed a "yes" vote would cause a 38 percent premium increase, and put thousands of residents at risk of losing their dental care. The organization's argument against the law also mentioned that there "is no law like this ballot question anywhere in the nation."
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