WASHINGTON, D.C. – Senator John D. (Jay) Rockefeller, IV, Chairman of the Senate Commerce, Science, and Transportation Committee, today released the following statement after Department of Health and Human Services (HHS) Secretary Sylvia Mathews Burwell announced that the Affordable Care Act’s medical loss ratio (MLR) provisions have saved consumers $9 billion on their health insurance premiums since 2011. 

“Once again, it’s very clear from today’s announcement on the medical loss ratio that this pro-consumer piece of the health care law is working for consumers. Because we fought so hard to make this provision part of health reform, we now have an industry that has become more efficient and transparent, and refocused its attention so consumers are prioritized over shareholders. And the billions of dollars the medical loss ratio has saved consumers is proof that subscribers are getting the value they deserve for their premium dollars.”

In May 2014, Rockefeller chaired a hearing in the Commerce Committee on the impact of the medical loss ratio, at which the Committee released a staff report, “Delivering Consumers Better Health Care Value for their Premium Dollars:  The Success Story of the Minimum Medical Loss Ratio Law.” 

The medical loss ratio (MLR) is the proportion of health care premium dollars paid by consumers that is ultimately spent by insurers on health care costs as opposed to insurers’ other expenses. The MLR assists consumers in assessing whether an insurer is spending its premium dollars on services that have greater potential consumer benefits.

The MLR provisions of the ACA were designed to improve the value consumers receive for their health insurance payments, and improve transparency by requiring detailed reporting by health insurers on how consumer dollars are spent. These provisions incentivize insurers to provide consumers high value for premium dollars by requiring them to pay rebates to policyholders when they do not spend a minimum percentage of premium dollars on medical care as opposed to non-medical administrative costs that do not directly benefit consumers.

To access the Committee’s report: 

·         Click here for “Delivering Consumers Better Health Care Value for their Premium Dollars:  the Success Story of the Minimum Medical Loss Ratio Law.”

·         Click here for Exhibit A: Correspondence of Chairman Rockefeller.

·         Click here for Exhibit B: Committee Majority Staff Reports.

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