Section 158.160 - Other non-claims costs(a)General requirements. The report required in § 158.110 of this subpart must include non-claims costs described in paragraph (b) of this section and must provide an explanation of how premium revenue is used, other than to provide reimbursement for clinical services covered by the benefit plan, expenditures for activities that improve health care quality, and Federal and State taxes and licensing or regulatory fees as specified in this part.(b)Non-claims costs other than taxes and regulatory fees.(1) The report required in § 158.110 of this subpart must include any expenses for administrative services that do not constitute adjustments to premium revenue as provided in § 158.130 of this subpart, reimbursement for clinical services to enrollees as defined in § 158.140 of this subpart, or expenditures on quality improvement activities as defined in §§ 158.150 and 158.151 of this subpart.(2) Expenses for administrative services include the following:(i) Cost-containment expenses not included as an expenditure related to an activity at § 158.150 of this subpart.(ii) Loss adjustment expenses not classified as a cost containment expense.(iii) Direct sales salaries, workforce salaries and benefits.(iv) Agents and brokers fees and commissions.(v) General and administrative expenses.(vi) Community benefit expenditures.(vii) Beginning with the 2022 MLR reporting year, prescription drug rebates and other price concessions that are received and retained by an entity providing pharmacy benefit management services to the issuer and are associated with administering the issuer's prescription drug benefits. 75 FR 74921 , Dec. 1, 2010, as amended at 85 FR 29262 , May 14, 2020