SPOTLIGHT: HHS to address medical-loss ratio and 'mini-med' plans

HHS intends to address a common question among insurers--the applicability of the Affordable Care Act's provision regarding special circumstances of mini-med plans in medical-loss ratio calculations--in upcoming regulation. "More recently, the issue of the applicability of the medical-loss ratio requirements to plans such as mini-med plans has come up," HHS said in a statement. "We recognize that mini-med plans are often characterized by a relatively high expense structure relative to the lower premiums charged for these types of policies."

HHS has not yet issued regulations implementing the medical-loss ratio requirements because the health reform law tasks the NAIC with first making recommendations to the agency. Press Release