Home > Health Insurance Company: Fraud, Denials and Other Issues > Health Insurance Companies Profits Drop 147% Due to Health Care Reform

Health Insurance Companies Profits Drop 147% Due to Health Care Reform

Health insurance company profit falls 147% due to health care reform.

Insurance company profits are falling despite the fact that enrollment is skyrocketing. Falling profits are specifically due to insurance companies violating Health and Human Services’ ingenious medical loss ratio rule which requires companies to pay premiums on actual medical care (not profits) or be forced to pay rebates back to their customers. Insurance companies are on pace to pay out $1.3 billion this year alone on rebates. The fact that insurance company profits is falling is a clear sign that health care reform is working!
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Aetna  – Profit drops 15% (Source 5)
Cigna –  Profit drops 44%  (Source 1, 2, 4)
Humana – Profit drops 80% (Source 3, 5)
WellPoint (aka BCBS) – Profits drops 8% (Source 6)
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Health insurance company profits continue to fall due to the implementation of health care reform. Executives and  shareholders will continue to lose profits as long as they continue to violate Health and Human Services’ ingenious medical loss ratio.

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Sources:
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  1. August 18, 2012 at 4:22 pm

    I understand that Medicare has a medical loss ratio of 6%. Medicare is not doing a good job of putting a lid on spending but what they do is reasonably efficient. If Medicare did a better job of capping (restricting, rationing, budgeting or similar word) benefits it could be a great program. The loss ratios of the insurance programs listed in the blog are still so high as to be embarrassing but it is good to see some improvement.

  1. August 18, 2012 at 10:47 pm

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