What Is Medical Loss Ratio In Health Insurance? 
The medical loss ration is a figure that measures how efficently health insurance premiums are being used to actually pay for plan members coverage . basically healthcare reform has dictated that heath insurers medical loss ration can not be under 80 % :20 % , this means that the premiums paid by policy holders must be used by the insurance company so that at least 80 % of those premiums go toward paying for members medical costs and no more then 20 % goes toward the companies profit/overhead costs . If a health insurer has a smaller medical loss ration < 80 % then it must issue rebates to their policy holders in the form of the difference divided by the total number of policy holders . 