What minimum percentage must health insurance companies in the large group market spend on medical care?

Health insurance companies operating in the large group market are required to spend a minimum percentage on medical care to ensure that a significant portion of premium dollars goes directly towards patient care and necessary medical services. The Affordable Care Act (ACA) establishes this requirement, specifying that large group market plans must spend at least 85 percent of premium revenue on medical care and health services.

This mandate is intended to promote efficiency and accountability within the healthcare system, ensuring that funds are allocated appropriately towards patient care rather than administrative costs. By establishing a high percentage threshold, the ACA aims to protect consumers by reducing excess spending on non-medical costs, thereby improving the overall quality of care and access to services.

The option stating 85 percent aligns with legislative requirements governing the large group market, making it the correct choice. Other options represent percentages either below or above this benchmark, which do not reflect the regulations established by the ACA for large group health plans.