Why the ACA is the death knell of for-profit health insurance

[zipplewrath]

8. Actual vs percentage

They can raise their total profit, by raising their total expenditures, they just have to charge more premiums. As long as their margins aren't over 15 - 20% they're fine.

It's not so much that they'll artificially charge more for health care, it's just that they'll have a disincentive to work for lowering health care costs. The lower the costs, the lower the actual profit they can achieve.

And there will be an ongoing battle over exactly what constitutes "health care expenses", and I suspect as with most regulation, they will ultimately get alot of things included so as to make as much of the remaining 15% pure profit.