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Most companies are overspending on healthcare without realizing it. In this workshop, we’ll expose the hidden costs driving up your healthcare spend and show you proven strategies to take control, without cutting benefits.
The ACA requires carriers to maintain an 85% loss ratio on large groups.
Of every dollar collected, $0.85 has to be paid in claims.
Just $0.15 remains to cover everything else for insurers: administration, technology, sales, marketing, overhead, payroll, broker compensation, and PROFIT.
When the rule was launched in 2014, the intention was good. Limiting insurance carrier profit margins to protect consumers, on paper, makes sense. In practice, it created a predictable problem.
Carriers expanded their business to include their downstream claim payees (where 85% of the dollars were going). They can now more efficiently funnel dollars to other entities they control, inflating profits (and subsequently inflating employer costs).
Carriers now control more and (for the most part) profit more. You control less and pay more.