BCBSIL Provides Information on Affordable Care Act Medical Loss Ratio
The MLR standard of the Affordable Care Act requires health insurance companies to devote 80% or 85% of the premiums they collect to provide health care services to customers, after subtracting taxes and regulatory fees. If an insurer does not meet the MLR standards, it may pay rebates to its customers. Given the inherently unpredictable nature of health care costs and utilization, it is not surprising that health plans may pay rebates to some customers in certain markets.
On June 1, Health Care Service Corporation (HCSC) provided the required Medical Loss Ratio (MLR) report to the U.S. Department of Health and Human Services (HHS) containing MLR/Rebate information for all four of its Blue Cross and Blue Shield Plans. HCSC met or exceeded the medical loss ratio standards for the vast majority of customers in 2011 and anticipates that only 4 percent of the total customer base will receive a rebate.
Blue Cross and Blue Shield of Illinois (BCBSIL), a division of HCSC, met or exceeded the MLR standards of the Affordable Care Act for all our eligible Illinois customers in 2011. As a result, no rebates will be issued in Illinois. BCBSIL's average medical loss ratio across all lines of business in 2011 was 88.1 percent.
BCBSIL is part of a customer-owned organization that reinvests its earnings to benefit the health and wellness of its customers. We are proud of our track record of strong expense management, collaboration with providers and other health care professionals, and business innovations.
Notice to Policyholders and Subscribers when MLR Standard is Met (MLR Notice #4
The Affordable Care Act requires health insurance issuers to provide a notice to subscribers and policyholders in the individual market, small group market and large group market who are not receiving an MLR rebate.