Is Blue KC concerned with the Minimum Loss Ratio (MLR) component of reform?
Yes, of course we are concerned, especially given that we still haven’t gotten any clarification on what can be included as claims expense in calculating MLR. At Blue KC, we know that we need to manage our administrative cost structure more than we have in the past, and we have already begun a stringent process of refining and restructuring our cost structure. The modeling we have done to date give us enough confidence to be able to commit to our broker commission structure at least through 2011 and possible beyond. We recognize our broker partners play a critical role in our business, and are committed to maintain this relationship.
