tag:blogger.com,1999:blog-7707793736288462113.post7273072007091656252..comments2024-03-15T03:27:49.084-04:00Comments on Bubbles and Busts: The ACA's Insurer-Friendly LoopholesAnonymoushttp://www.blogger.com/profile/00720722626969395929noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7707793736288462113.post-23585469203808850662012-11-30T11:53:00.409-05:002012-11-30T11:53:00.409-05:00Here's a quick chart showing the quarterly gro...Here's a quick chart showing the quarterly gross profit margin and profit margin for WLP and CI over the past 5 years:<br />http://ycharts.com/companies/WLP/chart#series=type%3Acompany%2Cid%3AWLP%2Ccalc%3Agross_profit_margin%2C%2Cid%3ACI%2Ctype%3Acompany%2Ccalc%3Agross_profit_margin%2C%2Cid%3AWLP%2Ctype%3Acompany%2Ccalc%3Aprofit_margin%2C%2Cid%3ACI%2Ctype%3Acompany%2Ccalc%3Aprofit_margin&format=real&recessions=false&zoom=5&startDate=&endDate=<br /><br />On these measures there is no real change since the ACA was enacted as margins have remained steady and positive.Anonymoushttps://www.blogger.com/profile/00720722626969395929noreply@blogger.comtag:blogger.com,1999:blog-7707793736288462113.post-33684983650305318222012-11-29T13:14:19.065-05:002012-11-29T13:14:19.065-05:00Wow... I would not have linked that HuffPo article...Wow... I would not have linked that HuffPo article on medical loss. The guy is either ignorant of his topic, intentionally misleading, or both. I suspect that latter, as in the first paragraph he goes from 95 cents on the dollar (a 95% ratio) to using the 80% term in the same sentence. The following paragraph he misstates what an 80% Medical Loss Ratio means, saying it means only 1 dollar of 5 goes to care, when in fact it is exactly the opposite, 4 of 5. I suspect it is intentionally misleading as any sane person should look at that and think "Wait, it went from 95 cents on the dollar to 20 cents on the dollar in under 20 years?" <br /><br />Not to mention the fact that 80% or 95% MRL doesn't mean that the remainder is profit. Most likely it is largely administrative overhead and all the expenditures that are not "giving money to subscribers," not just profits. A profit margin greater than 2-5% would be pretty surprising given the 1990's numbers. (I am seeing numbers between 8-9%, compared to 6-7% pre-ACA, but no one makes it clear whether that is profit or net-revenue or what.)Anonymoushttps://www.blogger.com/profile/12812944447777331359noreply@blogger.com