Anon wrote:
glatt wrote:
…one of the requirements is that insurance companies must spend at least 80% of their premium income on medical claims, with the remaining 20% allowed for administrative costs and profit; …All this CEO was doing was trying to get as close as possible to that 80% threshold instead of being up around 90% or so.
What if 80% of their premium income doesn’t cover all of the medical claims? They have to either increase their premiums or reduce the amount they pay for claims. Increasing premiums may cause them to lose market shares and consequently lose investors. Reducing the amount they pay for claims can be done by reductions across the board resulting in many disgruntled customers or they can cause fewer disgruntled customers by entirely denying selected claims.
I think they were aiming to spend exactly 80% and not one cent more, as 80% was defined as the requirement, only a "beta cuck" would spend 81%.
If the service they're supposed to be providing requires 81% expenditure, too bad for the dumb, dead Americans. Freedom isn't free.. or something.
The problem with running healthcare as a business is that no matter how many layers of regulation you pile on, the industry will find a way to weasel out of it. If Healthcare is treated as a human right, covered by Article I of the Constitution (collecting taxes for the general welfare), then we could define our goal as "providing healthcare" instead of the current "make shareholders of corporations as happy as possible while providing exactly as much healthcare as 80% of premiums can provide"