Al Franken: “over the last few weeks hundreds of thousands of Minnesotans have received letters or postcards in the mail from their…”

“over the last few weeks hundreds of thousands of Minnesotans have received letters or postcards in the mail from their health care insurers. These notices are letting people know whether their insurer met a new rule in the health care law--a rule that I championed--called the medical loss ratio, sometimes called the 80-20 rule. It could also be called the 85-15 rule, but it is known as the 80-20 rule, and I will explain. This provision, which I based on a Minnesota State law, requires large group insurers to spend 85 percent of the premiums they receive from their beneficiaries on actual health care services, not on marketing or administrative costs or CEO salaries. Eighty-five percent of their premium dollars have to be spent on actual health care. For insurers in a small group and individual markets, this threshold is 80 percent; hence, the 80-20 rule. This summer, across the country Americans are getting notices from their insurers that the insurer met or did not meet this 80 or 85 percent threshold. When those notices say the insurer failed to meet the medical loss ratio, Americans are also getting something else in the mail--a check or lower premiums for next year because under my medical loss ratio provision, insurers who do not spend at least the 80 or 85 percent of premiums on actual health care services for their beneficiaries have to rebate that money to their consumers.…”