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Look up "Medical Loss Ratio" from the ACA if you want to find out where the perverse incentives for health care pricing comes from..

• smallmancontrov 14d ago
  The cap is generous. If an insurance company is hitting it, competition is failing to keep them in check and lifting the cap would just let them gouge deeper. Of course, that doesn't keep them from constantly yapping this talking point, as if it wasn't that way before, as if we don't have evidence that it wouldn't work. "Just lift our profit cap" is self-serving baloney.
  • Avicebron 14d ago
    That's not the issue, it's because an insurer's absolute profit only grows if the premium base grows. This removes any reason to compete on reduced costs and an incentive to have the costs go up.
    • rileymat2 14d ago
      Except you can grow the premium base by adding customers as well, as you are featured in a direct price comparison on the ACA website. Higher premiums mean less customers, unless you are offering more services that they find valuable.