• null@piefed.nullspace.lol
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    2 days ago
    a = Premiums
    b = Healthcare spend
    c = Rebates
    d = Revenue
    
    b + c = (a x 0.8)
    
    d = a - (b + c)
    d = a - (a x 0.8)
    d = a x 0.2
    

    Therefore, no matter how much you drop b, d is still always going to be 20% of a.

    Where does the extra amount in d come from?

    • [deleted]@piefed.world
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      2 days ago

      Premiums are revenue. You posted stats showing they are not already getting the 20% portion for themselves, and that 20% portion is for running the business. Rebates never come into play because they never hit the 20%.

      If they only get 15% of the revenue from premiums they are only getting 75% of their potential cut which is used to run the fucking business before the possibility of profit comes into play. That means they have a huge incentive to cut any costs they can to approach their 20% cut WHICH THEY ARE NOT ALREADY GETTING.

      I already posted the simplest math possible. Your math is wrong. Your assumptions are wrong. Just fucking accept that you don’t understand and believe literally everyone else that understands how this works including the people who write professional articles about the topic.

      • null@piefed.nullspace.lol
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        2 days ago

        Premiums are gross revenue. d here is net revenue. That is what you misunderstood here. Do you understand it now?

        WHICH THEY ARE NOT ALREADY GETTING.

        I showed you a source that says they are.

        including the people who write professional articles about the topic.

        No one here has shared a single one…

        • [deleted]@piefed.world
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          2 days ago

          Can you admit that they are not starting out with their full 20% cut?

          That is the entire reason you cannot accept any explanations based on the reality that they have some wiggle room to increase profits.

          • null@piefed.nullspace.lol
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            2 days ago

            Again, I quoted you the exact figures that show year over year consistency with aligning to the range required by the law. Do you disagree with their findings?

              • null@piefed.nullspace.lol
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                2 days ago

                The range I’m referring to is the MLR requirements under the ACA.

                It’s a range, because they must take on a minimum 80% MLR, but in some cases the law requires them to take an even higher MLR.

                • [deleted]@piefed.world
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                  2 days ago

                  No, they are saying it doesn’t work the way you describe because the companies never actually reach their 20% cut. Rebates don’t cap their net revenue because they are never close to the cap.

                  • null@piefed.nullspace.lol
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                    2 days ago

                    No, they are saying it doesn’t work the way you describe because the companies never actually reach their 20% cut.

                    Lol absolutely not. They said no such law exists that would require insurers to rebate customers. Again, unlike you I’m happy to quote anything you think wasn’t said.

                    Rebates don’t cap their net revenue because they are never close to the cap.

                    So you disagree with the findings I linked you?