Colorado and Nevada both recently took action on dental loss ratios (DLR). Colorado’s SB 23-179, signed by Gov. Jared Polis (D), requires dental carriers to file DLRs with the state by July 31, 2024 and then requires the Department of Insurance to take specified action. Meanwhile, Nevada Gov. Joe Lombardo (R) signed SB 393, which takes similar action as the Colorado law, but provides additional methods for the state to enforce its 75 percent DLR threshold.
Due to provisions in the Affordable Care Act, medical insurers are required to ensure a specified percentage of premiums are utilized on medical care and quality improvement rather than administrative costs or profits. No such requirement currently exists for most dental insurance plans, requiring this legislation. These efforts build on a 2022 ballot initiative passed in Massachusetts with AAOMS’s support.
