The Medical Loss Ratio (MLR) provision established by the Affordable Care Act (ACA) requires health insurers who fail to spend specified percentages of their premium income on medical and quality care improvement expenses, to pay their customers rebates. The goal of this provision is to curb the growth in health care premiums while ensuring that plans are adequately covering healthcare expenses. In 2013, health plans reimbursed customers $335 million equating to approximately $80 per family receiving a refund. For 2014, health plans will reimburse customers $478 million equating to approximately $129 per benefiting family.
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