Feds Deny Florida's Request for Private Health Insurance Perk

TALLAHASSEE – Last week, the federal government denied Florida's request for an exemption from a part of the new federal health care law that requires insurers spend at least 80 percent of collected premiums on direct patient care.

Consumer advocate groups contend that the denial would mean that many Floridians will be due rebates from companies not in compliance with the regulation, singling out United Healthcare and Humana as prominent insurers likely to owe rebates.

State officials claimed they sought the exemption to keep health insurance companies from fleeing the state, but the federal government rejected the argument, arguing that Florida has one of the most competitive health insurance markets in the entire country.

Lax industry regulations have long made Florida a hotbed for insurance providers that routinely avoid other, more regulated markets such as New York. With the law applying to other states and Florida remaining as industry-friendly as the new law allows, it is unlikely that private insurers would choose not to do business in the state.