One of the most controversial provisions of Affordable Care Act was codified today as the Department of Health and Human Services (HHS) issued new rules regarding medical loss ratio (MLR).

The regulations require health insurers to spend 80% to 85% of premiums on direct care for patients and efforts to improve care quality, starting in 2011. HHS Secretary Kathleen Sebelius said the rules were crafted to restrict the money insurers allot for administrative costs, such as executive salaries, overhead and marketing. 

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