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View Diary: Why Baucus' plan is pretty damn good. (186 comments)

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  •  No. But you're close (1+ / 0-)
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    As you probably know, the medical loss ratio is the ratio of benefits paid by an insurance company to its total income, expressed as a percentage.  The 70% medical loss ratio was an early win for insurance companies weeks ago.    They don't have to 'gouge' to get it, it's written in the bill, as their rightful profit:30% and it's too high!

    The insurance companies wouldn't really care if they were forced to insure everyone and pay every claim, as long as they have 30% to keep, at the end of the day.

    What I'm saying is the conversation is on the WRONG topic.  A better question would be "what is a fair medical loss ratio"?  The insurance companies would like 50% ... they already have been guaranteed 70% by the Baucus bill (which is 5-10% more than they're making NOW), and Medicare is better than 95%.  In the past, insurance companies have successfully worked with medical loss ratios greater than 80%.  I think THAT is what we should be pushing for.  With or without a public plan, the bottom line is the cost, and that means a more reasonable limit on the medical loss ratio.  

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