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House panel readies bill to alter health law's medical loss ratio

The Hill, September 19, 2012

A feature of President Obama's healthcare law often touted by Democrats would change under a House bill now ready for mark-up. The measure (H.R. 1206) from Rep. Mike Rogers (R-Mich.) would alter the law's medical loss ratio (MLR) by excluding insurance brokers' fees from counting as administrative costs under the requirement. The medical loss ratio mandates that insurers spend no less than about 80 percent of their premiums on medical care rather than administrative costs or profit, or rebate the difference to policyholders.