4 ms·
Sorry, I am not following. Medical loss ratio = medical expenses divided by revenue. Margin = money left over after various expenses divided by revenue So if
by lotsofpulp 1y ago
Sorry, I am not following.
Medical loss ratio = medical expenses divided by revenue.
Margin = money left over after various expenses divided by revenue
So if revenue is $100, and medical expenses are $80, then the remaining funds are $20, or 20% margin.
- wat10000 1y agoYou’re right, I had the idea that you divide by cost, not revenue. So a 20% legal maximum margin. Which is still a fair bit above what they actually achieve, so there’s plenty of motivation to reduce their medical spending.