XYZ Insurance Company is participating in federal contracts. That means they must allocate and spend on actual benefits for the insured _____ of the money they collect.

Insurers with certain federal contracts, such as Medicare Advantage plans, must meet an 85% medical loss ratio. This means at least 85% of the money they collect must go toward health care and other covered benefits for insured people, rather than administrative costs or profit. The correct choice is 85 percent.

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