Medical Loss Ratio Calculator

How to Use the Calculator

1. Enter the total premium revenue in the "Premium Revenue" field.
2. Enter the total healthcare claims in the "Healthcare Claims" field.
3. Click the "Calculate" button to compute the Medical Loss Ratio.
4. The result will be displayed in the "Medical Loss Ratio (%)" field.

Understanding the Medical Loss Ratio

The Medical Loss Ratio (MLR) is a measure used to assess the efficiency of healthcare insurance plans. It is calculated as the percentage of premium revenue that is used for healthcare claims and benefits. A higher MLR indicates that a larger portion of the premium is being used for healthcare services, which is generally seen as more efficient.

The formula for calculating the MLR is:

MLR = (Healthcare Claims / Premium Revenue) * 100

This formula helps in understanding how effectively the insurance company is using the premiums collected to cover healthcare costs.