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Reinsurance

Insurance for insurance providers that have higher than anticipated health care claims. This program seeks to lower the premium insurers charge by limiting the high health costs they are exposed to. The Affordable Care Act establishes a reinsurance program for insurers participating on the exchanges, and if an enrollees costs reaches a certain amount (the “attachment point”) the program with reimburse for a portion of the costs above that amount.

Medical Loss Ratio (MLR)

The percentage of health insurance premium dollars an insurer spends on reimbursement for clinical services and activities to improve health care quality. The Affordable Care…