A provision of the Affordable Care Act requires that insurance companies spend at least 80% of premiums received on health care services, such as doctors, hospital bills and activities to improve health care quality. No more than 20% of premiums may be spent on administrative costs such as salaries, sales and advertising. This is referred to as the medical loss ratio standard or, more commonly, the 80/20 Rule. This ratio is calculated on a state-by-state basis. In Missouri, our insurer did not meet the 80/20 standard for 2011, and spent only 75.8% of premium dollars on health care and related activities. This means that everyone who participated in the company health plan received a refund of 4.2% of premium dollars paid in 2011.
Thank you Obamacare!
Republicans have vowed to repeal the ACA in it's entirety so that no insurance company will ever be held accountable for the premiums they charge their insureds, i.e all of us who are lucky enough to have health insurance.