Medical-Loss Ratios Requirement of Paying More Healthcare Expenses, ...

... Less in Overhead, Does NOT Reduce Health Insurance Companies' Profitability.  Good Payments Mean Good Business.

   One of the comparatively few provisions of the Patient Protection and Affordable Care Act in effect now, as distinct from the many provisions taking effect in say 2014 (who agreed to that?), is a provision known as "medical-loss ratios" which requires Health Insurance Companies to spend more on Healthcare benefits and less on administrative 'overhead' than they do now.

   Health Insurance Companies faced the coming of this provision with fear and trepidation.  Now that the provision is in effect, fear and trepidation have turned to recognition that they are still making profits.  Humana, along with the other major Health Insurance Companies, is reporting higher profits than anticipated.  See "Profit Rises at Humana, And So Does Its Forecast" p. B9, col. 1 (Copyrighted Associated Press Report printed in New York Times Nat'l ed., Tuesday, November 1, 2011).

Please Read The Disclaimer.