How Have States Controlled the Overall Price of Health Insurance Premiums?

States generally use three mechanisms to control the overall price of health insurance and to make sure that most of the money collected by insurance companies is actually used for medical care.

• Establishing a Medical Loss Ratio
• Requiring Actuarial Soundness
• Overseeing and Preventing Adverse Selection

A handful of states have used other mechanisms to regulate and oversee the costs of health insurance.