Some states have turned to minimum loss ratios as a way to lower health insurance premiums, according to NAHU, however, they may not be the most effective way to lower the cost of health coverage.

"The loss ratio refers to the percentage of health insurance premium costs used to pay medical claims rather than administrative expenses. Mandated minimum loss ratios have gained popularity because of a misplaced belief that a cap on administrative expenses will lower health insurance premiums. However, in the states that have already tried loss ratio caps, premiums and health care costs are not lower and health care quality is not better. Instead, minimum loss ratios can have unintended consequences," NAHU said in a statement.

"Loss ratio advocates suggest that health insurance is expensive because of insurance carriers' profit margins or marketing expenses, but this assessment misses the point that insurance is expensive because medical care is expensive."

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