Pretty well what I said with regards to the above bottom line. I know someone has put out some nice pie chart at some point to say what % of your premium dollar goes to what, will have to try and track one down.
Several years ago, a BadgerCare (the State of Wisconsin’s Medicaid program) administrator told me once that the program has less than 3% administrative overhead. That means that out of every dollar spent on the program, $0.97 goes to pay for Wisconsin residents’ medical care. He said that private insurance companies have something closer to 30% administrative overhead. I have no idea what it is now.
The metric you need is what percent of revenue was used to pay doctors and hostpitals vs how much was wasted on “buisiness expenses”
Profit is just the leftovers that they couldnt figure out how to spend before tax time
Pretty well what I said with regards to the above bottom line. I know someone has put out some nice pie chart at some point to say what % of your premium dollar goes to what, will have to try and track one down.
Several years ago, a BadgerCare (the State of Wisconsin’s Medicaid program) administrator told me once that the program has less than 3% administrative overhead. That means that out of every dollar spent on the program, $0.97 goes to pay for Wisconsin residents’ medical care. He said that private insurance companies have something closer to 30% administrative overhead. I have no idea what it is now.