MLR Calculation — Individual Market
Plan Year 2025 · All Regions · Reported to CMS by Jun 1, 2026
COMPLIANT — 80% Threshold Met
Incurred Claims
$8,400,000
Medical claims paid
+
Quality Improvement
$300,000
QI activities
÷
Adjusted Premium
$10,100,000
$10.4M − $300K taxes
86.1%
Medical Loss Ratio
ACA minimum for individual market: 80%
Margin above threshold: +6.1 pp — No rebate required
$10,400,000
Earned Premium
$300,000
Federal / State Taxes
$1,700,000
Admin & Profit (13.9%)
MLR Quarterly Trend — Plan Year 2025
Quarterly Detail
QuarterClaimsPremiumMLRStatus
Q1 2025$2.1M$2.6M82.3%OK
Q2 2025$2.0M$2.5M81.0%OK
Q3 2025$2.2M$2.6M86.9%OK
Q4 2025$2.1M$2.7M79.0%Near
Full Year$8.4M$10.4M86.1%Compliant
Page Guide

ACA Section 2718 requires health insurers to spend a minimum % of premiums on medical care and QI. Individual/Small group: 80%. Large group: 85%.

MLR = (Claims + QI) / (Premium − Taxes)

  • Claims: All incurred medical claims
  • QI: Qualified quality improvement activities
  • Premium: Earned premium less government taxes

If MLR falls below the threshold, the insurer must issue rebates to enrollees by September 30 of the following year. The rebate calculator shows the required amount.

MLR reports are submitted to CMS annually by June 1 using Form CMS-10418. The CMS Format tab shows the submission preview in the required format.

Submit MLR Report to CMS

Download CMS Format File