Glossary of Health Care and Medical Terms

In many cases,
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Medical Loss Ratio (or MLR) is the amount of health insurance premiums that an insurer spends on health care and activities to improve health care quality. Under the Medical Loss Ratio provision of the Affordable Care Act, insurance companies are required to spend 80 percent (individual and small group markets) or 85 percent (large group markets) of premium dollars on medical care and health care quality improvement, rather than on administrative costs.
Also see: MLR

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