Is it possible that the Cadillac Tax will be a major health spending cost ‘deflator’?
The Affordable Care Act requires health insurance carriers to submit information regarding the proportion of premium spent on clinical services and quality improvement, also known as the Medical Loss Ratio (MLR). It also requires them to issue rebates to enrollees if they do not spend at least 80% or 85% of premium dollars on medical care.
Some companies received premium rebates in previous years but many will notice these premium rebates to reduce and subside as medical insurance carriers become better able to predict the amount of premium that must be collected to accommodate the health care costs in plan pools.
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