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Sure, that's part of it and the minimum medical loss ratio does create some perverse incentives. But in most markets there are intense competitive pressures bet
by nradov 1y ago
Sure, that's part of it and the minimum medical loss ratio does create some perverse incentives. But in most markets there are intense competitive pressures between health plans which motivates them to negotiate lower rates with network providers. Your employer would be happy to switch from Aetna to Humana (or whatever) next year if it cuts their employee healthcare costs by 3%.
- vjvjvjvjghv 1y agoIt seems they have decided it’s easier to save money by jacking up deductibles and copays.
- nradov 1y agoOf course. Those employers are (mostly) not running charities so they'll always attempt to shift as many healthcare costs to employees as they can without triggering tax penalties, or hurting recruiting and retention. This is one reason why society would be better off with eliminating special tax advantages for employer-sponsored health plans. Having employers act as payers and intermediaries reduces consumer choice and hides the true cost of health coverage.