What Does Medical Loss Ratio Mean?

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What does Medical Loss Ratio mean? Read on to discover the definition & meaning of the term Medical Loss Ratio - to help you better understand the language used in insurance policies.

Medical Loss Ratio

Medical Loss Ratio

Medical loss ratio (MLR) is a financial metric used in the Affordable Care Act of 2010. It refers to the percentage of premiums that health insurers spend on claims and other expenses that improve quality of health. The law mandates that insurers must pay out rebates to policyholders if their MLF does not meet 80 percent for individuals and small groups or 85 percent for large groups. This does not apply in the U.S. territories.

We hope the you have a better understanding of the meaning of Medical Loss Ratio.

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