Chairman Henry A. Waxman today lauded the release of new rules that require health insurers to spend a substantial portion of premium dollars for health care services and assuring quality care.

“In today’s market, too many insurers – particularly in the individual health care market – charge high premiums and yet spend 30 percent or more on administrative costs, high salaries, and profits.  The American public deserves to know what happens to their premium dollars, and they deserve to have those dollars devoted to providing health care services.”

Plans not complying with the “medical loss ratio” (MLR ) requirements will be required to issue refunds to their enrollees based on their performance in 2011. These rebates could total more than $150 for enrollees in the individual market. In addition, the heightened transparency will provide consumers more information and put pressure on plans to improve their efficiency.

“This is just the latest in the series of new consumer protections arising from the health reform law.  Republicans looking to repeal health reform are seeking to block the release of consumer-friendly information and to allow health plans to waste their customers’ premium dollars.”