How an Obamacare tweak could save insurers millions

http://ift.tt/eA8V8J The insurance industry is quietly pushing lawmakers to tweak a very wonky rule in the Affordable Care Act that could save them money and significantly reduce the amount consumers would receive in rebates each year. At issue is the ACA’s medical loss ratio (MLR) which requires insurers to spend at least 80 percent of their revenue from premiums on health care related costs and no more than 15 percent on administrative costs for large groups and 20 percent for small groups. The new standards were intended to keep the cost of premiums in check by preventing insurers from incurring unreasonably high administrative costs. “The unintended consequences of imposing an arbitrary federal cap on health plan administrative costs are likely to outweigh any benefit these rebates will provide to consumers,” said Clare Krusing, communications director for America's Health Insurance Plans.



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