CMS released figures yesterday touting that the minimum loss ratio (MLR) requirements under the Patient Protection
This is how PP
In 2011 the average single premium for health insurance was $5,222 according to the Kaiser Family Foundation. 80% of this figure, $4,178, must be spent on medical claims meaning the insurance company would retain $1,044. For 2012 this number increased to $5,616. 80% equals $4,492 which gives the insurance company $1,124. So, because of MLR, insurance companies were able to retain an additional $80 per insured person in 2012 versus 2011.
The latest figures available (2010 census) state that 195.9 million people are insured through the private market in the United States. Simple math: 195.9 million x $80 = the insurance industry was able to increase their bottom lines by $15,672,000,000!!!
So, why are we celebrating $60 being returned to 8.5 million people when 195.9 million people paid $80 more?
Only in Congress would this be kind of accounting be considered "savings".