To determine if the business met the minimum Medical Loss Ratio (MLR), we need to calculate the MLR for this business. The MLR is the ratio of the total amount of premiums received by the insurance company to the total amount of premiums spent on medical claims. The Affordable Care Act (ACA) requires insurance companies to meet a minimum MLR of 80% in the individual and small group markets, and 85% in the large group market.
Given that the business took in 7 million dollars in insurance premiums and paid out 5.9 million in medical claims, we can calculate the MLR as follows:
MLR = Total premiums spent on medical claims / Total premiums received
MLR = 5.9 million / 7 million
MLR = 0.8428571428571429 or 84.29%
Since the MLR for this business is 84.29%, which is higher than the minimum MLR required by the ACA for the large group market (85%), we can conclude that the business did not meet the minimum MLR.