Formula or Equation
| MLR | medical loss ratio,MLR |
| PSHCSQI | premiums spent on health care services and quality improvement,PSHCSQI |
| PC | premiums collected,PC |
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Medical loss ratio,MLR
Formula or Equation Note
The MLR, also called the 80/20 rule, is one way the Affordable Care Act makes sure you get better value for your health care dollars. The law generally requires that 80% or 85% of the premiums collected by insurance companies be spent on health care services and health care quality improvement rather than on overhead, administrative costs, and profit.
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Premiums spent on health care services and quality improvement (PSHCSQI)
Premiums collected (PC)
Medical loss ratio (MLR)
Precision
References
- Wikipedia article: Loss ratio.