Which statement about the Affordable Care Act is accurate?

The Affordable Care Act (ACA) is a significant piece of legislation that introduced numerous reforms to the healthcare system in the United States. One of the key features of the ACA is the establishment of a medical loss ratio (MLR) requirement, which determines the percentage of premium dollars that insurance companies must spend on medical care versus administrative costs.

The correct statement indicates that the ACA limits the medical loss ratio for both large and small groups. Specifically, the ACA mandates that insurance companies must spend at least 80% of premium dollars on medical care for individual and small group plans, and at least 85% for large group plans. This requirement is intended to ensure that consumers receive value for their premium payments by requiring insurance companies to allocate a significant portion of their revenues to healthcare services rather than administrative expenses or profit margins.

This aspect of the ACA promotes greater transparency and accountability in the insurance market and is designed to protect consumers by keeping a check on the profitability of insurance companies. By setting these limits, the ACA encourages insurers to be more efficient in their operations and to focus on improving patient care rather than maximizing profit.

The other options do not align with the provisions established by the ACA. The law actually restricts medical underwriting practices, mandates that premiums be based