Daniel Reilly, 202-225-3130
WASHINGTON, DC – House Majority Leader Steny H. Hoyer (MD) released the following statement today in response to new regulations issued today by the Department of Health and Human Services as part of the Affordable Care Act. Known as the “Medical Loss Ratio,” these regulations require health insurers to spend 80 to 85 percent of consumers’ premiums on direct care for patients and efforts to improve care quality:
“Today’s action represents a significant step forward in our work to ensure that Americans’ receive better value for their health insurance dollar. Insurance companies must spend a minimum of 80 cents of each premium dollar on quality care or issue a rebate to their consumers, increasing the value of health insurance and making the insurance marketplace more transparent and consumer-friendly.
“These new consumer protections continue the efforts of the Affordable Care Act to stop insurance company abuses, like unjustified premium increases, and put consumers—not insurance companies – in control of their own health care."