August 01, 2012 Articles

MLR Rebates: Do Employers Bear the Distribution Burden?

An omission from the August 2012 regulations has effectively shifted the burden of distribution from insurance issuers to employers in the small and large group markets.

By Wayne Jacobsen, Melissa Hulke, Sonya Kwon – August 1, 2012

Regulations and guidance relating to health insurance issuers’ medical loss ratio (MLR) is complex and updated frequently. An omission from the most recent regulations has effectively transferred the burden of rebate distribution from health-insurance issuers to employers in the small and large group markets. What should employers be aware of when preparing to distribute rebates? And when might an employer itself retain a rebate?

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