A new report touts the Patient Protection and Affordable Care Act's medical loss ratio provision, saying it's saved consumers more than $3 billion in 2011 and 2012.
Half of the amount was returned to consumers in rebates by carriers, a report out Tuesday from the Commonwealth Fund found. Carriers also reduced profits and spending on brokers' fees, marketing and other administrative items to the tune of $1.4 billion.
Under the MLR rule, in effect since 2011 — and met with criticism from the insurance industry — carriers are required to spend 80 percent (for small-group and individual plans) or 85 percent (for large-group plans) of premiums on actual medical care and quality improvement activities.
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