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View Diary: Dear Mr. President (339 comments)

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  •  Question (2+ / 0-)
    Recommended by:
    greenearth, StateofEuphoria

    that I hope someone here sees way down the bottom :)

    Where's the 80% of premiums go to actual care come from? Because I was under the impression that it was far less than that. Closer to 60%. If it's 80, you've actually undercut one of my usual arguments :). Anyone know how to find this out?

    "I used to have goals. They were *evil* goals, but they were *goals*."--Dr. Doofenschmirtz

    by ChurchofBruce on Sat Jul 25, 2009 at 03:47:03 PM PDT

    •  80% is approximately the national average for (3+ / 0-)
      Recommended by:
      SarahLee, wmholt, merrily1000

      all private insurance, but for small businesses and individuals the number is more like 60%, maybe 70%.

      very large groups [very large employers] have approx 90% of premiums going to care, but this is partly because instead of buying full insurance, they just hire the insurance company to process claims. if they bought the full insurance from the insurance company, a smaller percentage would go to paying for care, and a larger percentage would go to the insurance company.

      from wendell potter, former insurance company exec:

      A study conducted last year by PricewaterhouseCoopers revealed just how successful the insurers’ expense management and purging actions have been over the last decade in meeting Wall Street’s expectations. The accounting firm found that the collective medical-loss ratios of the seven largest for-profit insurers fell from an average of 85.3 percent in 1998 to 81.6 percent in 2008. That translates into a difference of several billion dollars in favor of insurance company shareholders and executives and at the expense of health care providers and their patients.

      i can't remember right off the top of my head where i saw the 60% for individual/small business policies, or i'd link that too.

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