Starting in Jan. 2012, insurance companies selling individual plans must spend at least 80 percent of the money made from monthly premiums on medical care, with no more than 20 percent going to profits or administrative costs. By August, insurers that do not meet the 80 percent requirement will have to give consumers a rebate or future credit on monthly health premiums.
Rep. Mike Rogers (R-Brighton) opposed the mandated ratio, saying the failure to grant the exemption for Michigan would force smaller insurers to leave the state, creating job losses. Dozens of companies sell individual insurance plans in Michigan, six of which currently meet the 80-20 rule.
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