Correction - medical loss ratio

Correction - medical loss ratio

Today's Quote of the day included the following:

"The architects of the Affordable Care Act (ACA) rejected the solution
that would have worked - a single payer national health program - and
instead included in their legislation a requirement that private
insurers are allowed to keep, for their own administrative costs and
profits, no more than 80 percent (individual and small group insurance
markets) or 85 percent (large group markets) of the premiums collected.
Insurers refer to this percentage that they have to spend on patient
care as the medical loss ratio, i.e., paying for health care is a loss
to them."

The 80 and 85 percent mentioned are, of course, the medical loss ratios.
Obviously then the amount of the premium that the insurers are allowed
to keep is 20 percent for individual and small group plans and 15
percent for large group plans.

Getting rusty.