By: Bob Lucore
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| Limiting the amount that can be spent on overhead and profits | By Unknown on Jul 09 2012 at 8:01 PM |
| One of the better provisions of the ACA is the requirement that insurance companies spend at least 80% of what they collect in premiums on actual health care. Since Medicare spends only about 5% of premiums on health care, the requirement seems so reasonable; yet the insurance companies are fighting this requirement mightily. I suppose we shouldn't be surprised since they have been getting away with up to 30% for overhead and profits. Cutting down to 20% is spoiling their cushy deal. But it's a small price for them to pay for a mandate that everyone buy insurance, with government subsidies to help some of those who can't afford the premium. MvE | |
| Yes | By Unknown on Jul 10 2012 at 5:57 AM |
| Yes. That is indeed a great part of the ACA, and we would do well to think about how this can be leveraged for further reforms. Thanks--Bob | |
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