CMS sanctions UnitedHealthcare plan: 3 things to know

One of UnitedHealthcare's Medicare Advantage plans will face enrollment restrictions for 2020 due to compliance issues, according to the Star Tribune.

Three things to know:

1. CMS sanctioned the UnitedHealthcare plan because for the third year in a row, the plan didn't adhere to a rule requiring it to have a medical loss ratio of at least 85 percent. A medical loss ratio measures how much of an insurer's revenue goes toward medical claims versus overhead costs.

2. UnitedHealthcare said despite added benefits, the plan fell out of compliance because of a federal legislation reducing the health insurer's tax liability for 2018.

3. Enrollment for the affected plan will be suspended for the 2020 contract year. The health plan is sold in nine states to less than 1 percent of UnitedHealthcare's Medicare Advantage members. 

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