Affordable Care Act

The Human Resources Department continues to monitor and comply with the Healthcare Reform and the Affordable Care Act. Implementation steps, per the law, began in 2010 and continue through 2018. Each step introduces new requirements for employers and health plans. For 2012, the Act requires health insurance companies to spend at least 80 percent of the premiums they receive on health services and activities to improve health care quality. This is referred to as the Medical Loss Ratio (MLR), or 80/20 rule. If a health insurer does not meet this standard, they must issue a premium rebate for the difference.

Health Alliance, the City’s health insurer, had a Medical Loss Ratio (for the most recent year) that met or exceeded the required Medical Loss Ratio. Therefore, the City’s plan is currently in compliance with this aspect of the Act.