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GAO report on medical loss ratio finds insurers spend little on quality improvement

Joseph Burns

About Joseph Burns

Joseph Burns (@jburns18), a Massachusetts-based independent journalist, is AHCJ’s topic leader on health insurance. He welcomes questions and suggestions on insurance resources and tip sheets at joseph@healthjournalism.org.

The U.S. Government Accountability Office generated some minor headlines last week when it reported on how much health insurers paid in rebates to policyholders in the first two years under the Affordable Care Act’s medical loss ratio (MLR) rules.

A close read of the report, “Private Health Insurance: Early Effects of Medical Loss Ratio Requirements and Rebates on Insurers and Enrollees,” reveals important details about how insurers spent the premium income they collected from consumers and businesses. The report shows insurers spend very little on quality improvement, that they report modest profit numbers and that MLR rules have not had caused them undue harm.

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