October 31, 2011

Private Health Insurance: Early Indicators Show That Most Insurers Would Have Met or Exceeded New Medical Loss Ratio Standards

The Government Accountability Office (GAO) sent this analysis of insurers' 2010 medical loss ratio data (MLR) to Congress. GAO found most insurers would have met or exceeded the 2011 Patient Privacy and Protection Act (PPACA) MLR standards and group market insurers had the highest average adjusted PPACA MLRs and the adjustment and the PPACA MLR formula most affected individual and small group insurers due to the use of new reporting requirements, resulting in a report of a wide range of MLRs by multistate insurers.