Chances are you’ve heard of the Affordable Care Act – President Obama’s landmark health reform law that’s holding insurance companies accountable, lowering health care costs, giving Americans more freedom and control in their health care choices, and improving the quality of care.
One part of the act that you may not be as familiar with, however, is the “80/20 rule” – also known as the Medical Loss Ratio (MLR) rule – which went into effect in 2011.
The rule generally requires health insurance companies in the individual and small group markets to spend at least 80% of the premium dollars they collect on medical care or activities to improve health care quality. And that increases to 85% for insurance companies in the large group market.
Today, the Department of Health and Human Services released some new numbers showing just how much this rule has saved consumers over the last few years.
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