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November 13, 2020

Insurers Required to Pay Nearly $2.5 Billion in Medical Loss Ratio Rebates

Over 11 million individuals across the individual, small group and large group markets will be eligible for rebates totaling $2.5 million as a result of the Affordable Care Act’s limitation on the amount of premium revenue that insurers can apply to profits. For individual and small group plans, 80% of premium revenues must go to medical costs and for large group plans, it is 85%.  The majority of the rebates will go to people enrolled in individual market plans and the average rebate is $219 per person.