Consumers Union Releases New Report: Health Reform’s ‘Value for Your Dollar Rule’: Early Impact in Arizona

Media Contacts

Statement of Diane E. Brown, Executive Director

Arizona PIRG Education Fund

Today’s new report by Consumers Union Health Reform’s ‘Value for Your Dollar Rule’: Early Impact in Arizona highlights how the “medical loss ratio” can help consumers get a good value for their premium health care dollars. Under the Affordable Care Act, insurers covering individual and small businesses must spend at least 80 percent of premiums on medical care or provide rebates to consumers.

While some administrative costs are inevitable, insurers spend billions of dollars attempting to shift costs onto providers, and processing duplicative, overly-complex paperwork. To encourage efficiency and get costs under control, MLR ensures that health coverage provides value for consumers’ dollars and is of high quality.

As the report points out “early evidence showing the impact of the new MLR rule …shows that many of Arizona’s insurers are changing business practices or preparing for millions in rebates in response to the new law.”

Our health insurance dollars should be going towards actual care not excessive industry profits and inefficient business practices. Today’s report points out health care insurers can remain profitable while providing greater value for premium health care dollars – a victory for Arizona consumers.