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How would that make them money? Every dollar saved in preventative care is $0.15 less profit, because insurers have a fixed profit margin as a percent of total
by s1artibartfast 2y ago
How would that make them money? Every dollar saved in preventative care is $0.15 less profit, because insurers have a fixed profit margin as a percent of total care provided, due to the ACA's 85/15 rule .
The only reason to to do it would be to compete with a peer insurance company that is already doing it, resulting in less profit for both parties. The optimal strategy from the insurance profit perspective is to ban any DNA based cost saving measures for all insurance companies.
- unyttigfjelltol 2y agoSetting aside for a moment whether this is feasible, an effective preventative care program would make the insurance program more competitive, in cost or quality. You're assuming employers and patients are just along for whatever anticompetitive ride insurers take them on. That would be a departure from marketplace fundamentals. The ACA also has safe harbors for process improvements . On the feasibility point, if this use case is entirely infeasible I don't know what all the hand-wringing on this board is about!