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Report: Midwest insurers could have trouble meeting minimum loss ratio

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HealthLeaders-InterStudy, a provider of managed-care market intelligence, reported today that some health insurers in Illinois, Iowa, Kansas and Missouri will have trouble meeting minimum medical loss ratio (MLR) requirements.

The MLR refers to the portion of premium dollars an insurer spends compared with revenues received. According to the group’s Heartland Health Plan Analysis, as insurers in the region adapt to new federal medical loss ratio standards implemented through health-care reform, smaller insurers will have trouble remaining competitive.

Officials believe that MLR requirements will increase premiums by reducing competition, the analysis said.