Insurance Companies Failing To Meet MLR Requirements Pay Rebates Of $1.1 Billion For 2011

Health insurance companies whose plans failed to meet federal medical loss ratio (MLR) requirements during 2011 paid rebates of $1.1 billion. The MLR rules dictate that health insurers must spend at least 80% of premiums on direct services related to the individual’s health care or on quality improvement activities; if the insurers fail to meet this requirement, they must issue rebates to beneficiaries. Consumers with individual health insurance policies received rebates of $394 million. Small group plans paid rebates of $321 million, and large group plans paid rebates of $386 million. In addition to paying rebates, health insurers . . .