The US Department of Health and Human Services announced in premiums last year that Americans received $ 332.2 million in premium discounts due to the Medical loss ratio (MLR) provision. Shortly after Weiss Ratings, an independent research and analysis provider, published its analysis, including ten insurers, most owe rebates in MLR.
Implemented specified under the Affordable Care Act (ACA), the Medical Loss Ratio (MLR) provision (commonly known as the 80/20 rule Background on the Medical Loss Ratio ) requires that insurers spend at least 80 percent of premium dollars collected for medical care and health quality improvement.
If the insurer spends more than 20 percent of premium dollars on administrative or overhead costs, consumers are owed a discount at the beginning of each August. This provision was put into effect that the consumer guarantee insurance, receive more value for their premium dollars, the insurance companies to hold responsible for their expenditure, and to combat the rising cost of health insurance.
- [1945006MLRRabatte] may by a refund check in the mail, a lump-sum payment to the same account with which to pay the premium or a reduction of their future premiums. The provision has already been saved Americans millions of dollars .:
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In 2013, consumer $ up-front 3.8 billion saved on their premiums as insurance companies operate more efficiently
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In addition, consumers will be $ 330 million due to refunds, with 6.8 million consumers due to receive an average refund in favor of $ 80 per family.
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of MLR and other Affordable Care Act saving standards contributed consumers about $ 4100000000 on premiums in 2013 for a total of $ 9 billion savings savings since the MLR program began in 2011.
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Each year more insurers the 80 meeting / $ 332.2 million sounds like a considerable amount of 20 standard, the spending of more of the premium dollars they collect on patient care and quality improvements ,
Medical loss ratio Actions for 2013
Although for discounts, it is only a small part of the collected premiums for 2013. 'analysis Weiss sound which $ 332.2 million in over ~~ POS = TRUNC premiums paid only 0.7 percent of the $ 450 billion in total premium income for 2013
[1945006Zusätzlich], is $ 332.2 million, a 34 percent drop from the for 2012 returned $ 504.2 million, which proves that the insurer cautious of their spending are getting.In fact, according to Weiss, only 6.7 percent of insurers have been required to pay rebates. That's only 119 of the 1,771 insurers who fell dollar nearing 80 percent of the premium, to be spent on medical care and health quality improvement.
Weiss' analysis indicates that seven of the ten companies that were required, most of the rebates were life and pension insurance insurers to pay back 
Chart Source :. Weiss Investment ratings
, the average family will receive a refund of around $ 80; However, Weiss' analysis also showed that in some states significantly more money the insurer will be reimbursed. The average amount of refunds in the five states was clear:
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Minnesota average refund: $ 522
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Alaska's average refund: $ 388
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Montana average refund: 286
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Wyoming average refund: 268
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Iowa average refund: $ 206
read in the analysis: $ 332.2 million seems like a great discount Weiss investment ratings
Although, there is a significant decrease from 2012 MLR rebates. The 93 percent of the insurer that they are reached or exceeded the level of premiums required to spend on medical expenses, is a good sign that consumers get a better value for their premium dollars.
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