General Discussion

tonyt53

(5,737 posts)

3. Ya wanna know why? It is because their profits have a cap in place.

Mon Jun 20, 2016, 06:19 PM

Jun 2016

Before the ACA the average EBIT (Earnings Before Interest and Taxes) was about 35%-40% for most insurance companies. The ACA cut that in half, and they can now make a maximum of 19% EBIT. People are actually utilizing their insurance - they are getting medical care before a problem develops or worsens. Insurance companies are running in the high single digit or low teens in profit. Remember, they are for-profit companies with stockholders, so profit is a must. In another 3-4 years, as the general health of people improves, the amount paid by the insurance companies out in benefits will decline. Probably not what you wanted to hear, but there it is.

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More bad news for Republicans: The Affordable Care Act is working great [View all] gratuitous Jun 2016 OP

It would be awesome, if my premiums stopped going UP every damn year. onecaliberal Jun 2016 #1

Mine too but I understand its working great for the greater vs the few uponit7771 Jun 2016 #2

Ya wanna know why? It is because their profits have a cap in place. tonyt53 Jun 2016 #3

"medical care before a problem develops" scscholar Jun 2016 #5

Pre-existing conditions cannot keep you from getting insurance or make it more expensive Freddie Jun 2016 #8

Indeed - they never went up before gratuitous Jun 2016 #4

Roughly 5% per year the last decade, vs 10% per year the decade before bhikkhu Jun 2016 #6

They definitely went up before ACA too, but it seems like we're onecaliberal Jun 2016 #9

We would be facing bankruptcy without the ACA central scrutinizer Jun 2016 #7

Pre-existing conditions may not be important to those who has not experienced a problem, Thinkingabout Jun 2016 #10

While LWolf Jun 2016 #11