18 Sep Medical Loss Ratio Rebates: How to Calculate and Distribute

All employers offering a fully-insured health plan to their employees, should be receiving or should have received an MLR rebate check for distribution.

There are few easy ways to calculate and disperse these funds.  Please note, you are required to do this within 90 days of receipt of the check from your insurance carrier.

You can distribute these funds in the form of a “premium holiday” to your employees.  For instance, if you pay half of the employee cost (based off the employee cost only, not dependent) then you keep half and distribute the other half to your employees.  You can also simply give each a check. However,  I recommend the premium holiday, as it is typically easier.

This calculator will help you to determine the appropriate amount for each.  As always you can contact our office with any questions you may have.