Title
Impact Of Medical Loss Regulation On The Financial Performance Of Health Insurers
Abbreviated Journal Title
Health Aff.
Keywords
LOSS RATIO; Health Care Sciences & Services; Health Policy & Services
Abstract
The Affordable Care Act's regulation of medical loss ratios requires health insurers to use at least 80-85 percent of the premiums they collect for direct medical expenses (care delivery) or for efforts to improve the quality of care. To gauge this rule's effect on insurers' financial performance, we measured changes between 2010 and 2011 in key financial ratios reflecting insurers' operating profits, administrative costs, and medical claims. We found that the largest changes occurred in the individual market, where for-profit insurers reduced their median administrative cost ratio and operating margin by more than two percentage points each, resulting in a seven-percentage-point increase in their median medical loss ratio. Financial ratios changed much less for insurers in the small-and large-group markets.
Journal Title
Health Affairs
Volume
32
Issue/Number
9
Publication Date
1-1-2013
Document Type
Article
Language
English
First Page
1546
Last Page
1551
WOS Identifier
ISSN
0278-2715
Recommended Citation
"Impact Of Medical Loss Regulation On The Financial Performance Of Health Insurers" (2013). Faculty Bibliography 2010s. 4393.
https://stars.library.ucf.edu/facultybib2010/4393
Comments
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