Two days before Thanksgiving, Sen. Elizabeth Warren (D-MA) sent a letter with her colleague Sen. Mike Braun (R-IN) asking the U.S. Department of Health and Human Services to investigate the impact of Obamacare’s medical loss ratio rules on insurer consolidation.
It’s a striking, if tacit, admission of the law’s flaws by one of the nation’s leading progressives.
Obamacare’s medical loss ratio rules require insurers to spend 85% of the premiums they receive in the large-group market, and 80% in the individual and small-group markets, on beneficiaries’ medical claims. The intent was to cap insurers’ profits and spending on marketing and administration. Politicians could claim they were ensuring that consumers got good value for their premium dollars.