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AHIP seeks broad definitions in medical-loss ratio regs
Modern Healthcare

AHIP seeks broad definitions in medical-loss ratio regs The so-called medical-loss ratio provision in the new health reform law requires that insurers spend at least 85% of subscriber premiums on medical costs in group-coverage plans, and at least 80% in individual plans, starting next year. The goal is to prevent insurers from spending too many premium dollars on administrative costs, such as salaries and overhead.

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