Side Effects: What’s a Medical Expense?

Vivek Rajasekhar / May 12, 2010

Vague statutory language can make laws hard to interpret and enforce. And that’s certainly true of the recently-passed Patient Protection and Affordable Care Act.

Exhibit A: Obamacare requires insurers to spend at least 85 percent of group market premiums–and 80 percent of individual market premiums–on medical expenses.  The remainder goes to administrative costs and profits. But what does–and doesn’t–count as a medical expense?  Health insurers, legislators and regulators are already haggling over that question. (more…)