Manonthestreet
Diamond Member
- May 20, 2014
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The Affordable Care Act kept profit margins in check by requiring companies to use at least 80 percent of the premiums for medical care. That's good in theory, but it actually contributes to rising health care costs. If the insurance company has accurately built high costs into the premium, it can make more money. Here's how: Let's say administrative expenses eat up about 17 percent of each premium dollar and around 3 percent is profit. Making a 3 percent profit is better if the company spends more.
It's as if a mom told her son he could have 3 percent of a bowl of ice cream. A clever child would say, "Make it a bigger bowl." Why Your Health Insurer Doesn't Care About Your Big Bills
I know this happened to me on my ankle surgery. Half hr at the most to stick one pin in. cost me 20 grand just for the room.
It's as if a mom told her son he could have 3 percent of a bowl of ice cream. A clever child would say, "Make it a bigger bowl." Why Your Health Insurer Doesn't Care About Your Big Bills
I know this happened to me on my ankle surgery. Half hr at the most to stick one pin in. cost me 20 grand just for the room.