Medical Loss Ratio

Definition

• A ratio used by insurance companies comparing the total cost of health benefits to premiums earned in a set period of time.

Synonyms
medical insurance earnings, medical non-profit ratio, insurance company revenue

Related Terms and Acronyms

• Earned Premium (EP) — Acronym,
  • The amount of premiums that an insurer has collected from an insurance policy at a given time.
• Health Insurance (HI) — Acronym,
  • Insurance that covers the costs of medical expenses for insured persons.
• Lapse Ratio — Definition,
  • A ratio that compares how many life insurance policies have lapsed from the beginning year to the end.
• Loss Ratio — Definition,
  • A method of comparing an insurer's losses to premiums earned in a specific period of time.
• Premium-to-Surplus Ratio — Definition,
  • A method used to determine an insurance company's financial stability.
• Usual, Customary and Reasonable Fees — Definition,
  • The expected cost of a medical treatment, and what an insurance company is willing to pay.