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 refers to the percentage of premium revenue that health insurers must spend on medical care and health services, as defined by federal regulations.

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