Court Lets American Medical Stay In Florida

Florida insurance regulators have accused the company of violating state health insurance pricing rules by dividing groups of customers into underwriting “tiers,” or classes, when setting rates.

American Medical says that it believes it has been complying with state pricing laws and regulations, and that Florida regulators have rebuffed its efforts to negotiate a compromise.

“We remain confident that we will prevail in the appeal process,” Samuel Miller, American Medical chairman, said in a statement about the dispute.

American Medical also announced that it will voluntarily change the way it prices business in Florida starting Nov. 1. The company will switch to rating blocks of business, from rating groups of customers in tiers.

American Medical is switching because Florida regulators seem to prefer the block rating approach, but the switch should not have much of an effect on revenue, the company says.