Notice of Proposed Rulemaking - Computation of, and Rules Relating to, Medical Loss Ratio
The IRS released proposed regulations that provide guidance to Blue Cross and Blue Shield organizations, and certain other health care organizations, on computing and applying the medical loss ratio as detailed in the Affordable Care Act (ACA). That provision requires carriers to apply at least 80 percent of paid premiums to health care services and up to 20 percent to administrative costs.
