Democratic Press Office - (202) 224-8374
Dec 07 2012
WASHINGTON, D.C.— Chairman John D. (Jay) Rockefeller IV today released the following statement after a Commonwealth Fund study showed the Affordable Care Act’s medical loss ratio (MLR) saved consumers nearly $1.5 billion in insurer rebates and overhead cost savings in 2011. The MLR provision requires that insurers spend at least 80 percent of consumers’ premium dollars on actual medical care or quality health improving activities or pay a rebate to consumers. The study found that, alongside paying $1.1 billion in rebates, health insurers have become more efficient by cutting over $350 million in excessive administrative costs.