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This is correct. Their profits are capped at 20%. If they make too much money, they have to refund premiums.
by riahi 7y ago
This is correct. Their profits are capped at 20%. If they make too much money, they have to refund premiums.
- dehrmann 7y agoEven pre-ACA, I don't remember insurance companies having margins that big. Progressives like to paint insurance companies as villains, but they're not printing money, and definitely not like tech or financials. Not that insurance companies don't add bloat, but healthcare cost in the US is due to a lot of factors. - Overtreatment to mitigate liability - Overtreatment of the elderly - Poor end-of-life management - Insurance bureaucracy - Siloed providers - Intervention rather than prevention - Conflict with other policies (like the farm bill) The ACA tried to fix, um, not really any of them. But props to Michelle Obama for axing the food pyramid.
- vkou 7y agoInsurers are absolutely villains (But not the only villains in this game). They are the reason that hospitals have such bloated billing departments, and who gets to pay for all that? Well, I, as the patient, do.