Insurance companies are required to spend something like 80% of premiums on claims. This sounds like a really good thing, almost everything coming in has to go

Insurance companies are required to spend something like 80% of premiums on claims. This sounds like a really good thing, almost everything coming in has to go back out… What it really means is they love high “allowed” prices. They live on the 20% and want to see the pie as large as possible. Healthcare costs go up? They raise premiums — win-win. The road to hell is only paved with good intentions.