Under the new health reform law, insurers have to spend 80 or 85% of premium dollars on health care delivery and quality. This is called the medical loss ratio, or MLR. The intent is to limit administrative expenses so that premium rates come down. Thus, this is a critical piece of health reform.
Yesterday, the National Association of Insurance Commissioners voted unanimously to improve a definition of the MLR that appears to be relatively consumer friendly. Here's some more about it. Although the details are still fuzzy, it seems we may be moving in a productive direction. Jennifer