Medical Loss Ratio Analysis Of Obama Care

The insurance companies make profits from the earnings they get after investing the customer premiums and from the premiums that they collect from the customer. This is different in health insurance because of the recent health care debate that has led to emergence of Obamacare. A patient protection and affordable care act limit the profits that the health insurance companies acquire from the customer expense. When the revenue that comes from premiums divides the total amount of money used on the insured person medical care, it constitutes the Medical Loss Ratio (MLR). To enhance their provision, Obamacare imposes little medical loss ratio on the insurers.
Insurers are required to spend eighty percent of the total premiums on the medical cost