Bill > LB639

This bill requires dental plan carriers to meet a minimum dental loss ratio of 85% starting January 1, 2026, which means that at least 85% of the premiums collected must be used to pay for actual dental care services. The bill defines key terms such as dental care providers, dental care services, dental plan carriers, and how to calculate the dental loss ratio, which involves dividing incurred claims by earned premiums while excluding taxes and regulatory fees. Beginning January 1, 2027, dental plan carriers must submit an annual report to the Department of Insurance detailing their dental loss ratio, including rates, rating schedules, and supporting documentation. If a dental plan carrier fails to meet the 85% minimum dental loss ratio, they must return excess premiums to their insureds. The bill does not apply to dental insurance policies issued under the medical assistance program, and it grants the Department of Insurance the authority to create rules and regulations to implement these requirements. The primary goal of this legislation is to ensure that dental insurance companies are spending a substantial portion of their collected premiums on actual dental care services, rather than administrative costs or profits.

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https://nebraskalegislature.gov/bills/view_bill.php?DocumentID=59251