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Health insurers have their profits capped by the ACA. They can’t make more than 120% of what they spend. Obviously this creates an incentive to spend more, and
by alecst 3y ago
Health insurers have their profits capped by the ACA. They can’t make more than 120% of what they spend. Obviously this creates an incentive to spend more, and that’s a whole other discussion, but the point stands that they aren’t paying back 1% of what they make.
- gregw2 3y agoYou raise a good point; I wasn't familiar with that 80/20 ACA rule. I'm not sure I could put my fingers on the one-page annual notice I received but it said something like the healthcare benefits paid out for the prior year were 1.6 million which seemed awfully low compared to the number of employees and the costs of premium per employee. I won't repeat my claim without better evidence next time; feel free to discount it.