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Do American insurance companies have any incentives to minimize their spending?
by ywvcbk 2y ago
Do American insurance companies have any incentives to minimize their spending?
- Ekaros 2y agoAs in not paying out money yes. As in keeping costs low no...
- tiahura 2y agoA $ is a $.
- willcipriano 2y ago20% of 2 dollars is better than 20% of 1 dollar.
- s1artibartfast 2y agoThats not correct. It is actually the exact opposite. The ACA places profit controls on for insurance companies how much they can make as a percent of what they pay out (aka the 80/20 rule). They must pay out 80% in coverage with profit and operation expenses coming from the other 20%. Therefore, the best way to increase profit is to ensure the total price of healthcare they cover goes as high as possible. It is better to make 20% of a $1,000 drug than a $10 one.