How Did the Affordable Care Act (ACA) Impact Benefit-Expense Ratios?
The ACA, signed into law by President Obama in 2010, requires health insurers to spend at least 80%-85% of premiums received on healthcare (depending on the size of the insurer), with any excess required to be given back to policyholders as rebates. The Trump administration in 2019 granted states some flexibility with this so-called 80/20 rule.