While the term “medical-loss ratio” may be health care jargon to consumers, they’re about to find out what it means in the form of a check from their insurance company next week. This “MLR” provision of the federal health care overhaul requires insurance companies to spend a minimum of 80 percent of their revenue (85 percent for large groups) on health care costs, as opposed to marketing, administrative costs or other non-medical fees.

Consumers across California will be getting rebate checks from their health insurers next week – one of the first tangible results of the federal health care overhaul. About 1.8 million Californians will be getting money back, either directly or through a reduction in their monthly premium. The average California rebate: about $65 a family.

Read more at: www.sacbee.com

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