OK, once again I am in the position of defending insurance companies. Insurance companies BY LAW can only take a % of premium paid and not pay claims with it. It is more of less 17%. That includes their admin, advertising, salaries and profits. EVERYTHING except money they pay in claims. That was the law for self funded plans, before O'care and since O'care it has been that way for everyone. Actually, it is a tad more detailed than that, 20% for some 15% for others depending on the size of the group.
So I am crystal clear, by law, insurance companies have to pay out 83% of the money they collect on claims.
Now, remember, that is EVERYTHING except claims paid out. So, how many of you work for companies that want a 17% margin. I doubt, many, and remember, 17% includes a lot of costs, it is not or nowhere near pure profit.
O'care is and remains and will always be a wealth transfer system. When the mindless press harps about the success of O'care, they are talking about those that could not afford, or did not afford healthcare before. THose that work, had jobs, had company provided healthcare are NEVER in the story, just a bunch of jobless people.
And yes, as I have stated a million times, letting people sign up when they want to , and letting people sign up when they have known risks, invalidates the insurance model from the gitgo.
This is not just very difficult to understand, yet, those with an agenda have disregarded everything to get votes. Yes votes.
Click to expand...