Limits on Share of Private Premiums Insurers Spend on Non-Medical Costs

New limits will be set for the percent of premiums that insurers can spend on non-medical costs. Beginning in 2010, health plans are required to report the proportion of premiums spent on items other than medical care. Beginning in 2011, health plans in the large group market that spend less than 85 percent of their premiums on medical care and health plans in the small-group and individual market that spend less than 80 percent on medical care will be required to offer rebates to enrollees.

Source: The Common Wealth Fund