This bill establishes a new requirement for health plans in Washington State, mandating a medical loss ratio of at least 90 percent for plans issued or renewed on or after January 1, 2027. The medical loss ratio is defined in accordance with federal regulations, specifically referencing 45 C.F.R. Sec. 158.221 as it stands in 2025.

Additionally, the bill grants the commissioner the authority to adopt any necessary rules to implement this new requirement effectively. This legislative change aims to ensure that a significant portion of health plan expenditures is directed towards medical care rather than administrative costs or profits.