Estimated returns from the MLR (administrative costs to medical costs)

Bruce Webb on Angry Bear was among the first of bloggers to point out that this aspect of the Medical Loss Ratio begins in 2009 and  here and points again to the MLR as it comes into play.

A non-profit group estimates if the Affordable Care Act provisions had been effect in 2010, U.S consumers would have received $2 billion in rebates.

Sara Collins, vice president of the Commonwealth Fund, a foundation supporting independent research on health policy, said the medical-loss ratio rules that went into effect in 2011 were designed to control private insurance administrative costs for consumers and government.
The rules require a minimum percentage of premium dollars to be spent on medical care and healthcare quality improvement — not administrative costs and corporate profits. Insurers must meet a minimum medical loss ratio of 80 percent in the individual and small-group markets, and 85 percent in the large group market — and issue rebates if they do not, Collins said.

Read more: here and here.

The report by the Commonwaelth Fund: The Commonwealth Fund estimates returns to customers from insurance companies who did not comply last year for all fifty states.