Comment Comment by lotsofpulp Medical Loss Ratio:https://www.healthcare.gov/glossary/medical-loss-ratio-mlrIt says 80%/85% of premiums have to go back out as payments for claims.> Since they have no incentive to increase their margin through negotiation,I do not see why this would be true. The less an insurance company pays for healthcare, the lower the premiums or can offer and win more business. parent lotsofpulp 4 years ago
https://www.healthcare.gov/glossary/medical-loss-ratio-mlr
It says 80%/85% of premiums have to go back out as payments for claims.
> Since they have no incentive to increase their margin through negotiation,
I do not see why this would be true. The less an insurance company pays for healthcare, the lower the premiums or can offer and win more business.