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A comment on Leaked Scripps records reveal automated mark-ups for hospital care. Parent comment

Re:Leaked Scripps records reveal automated mark-ups for hosp... by pmalynin on Friday December 10, 2021 @02:39PM (#29514513)
Insurance companies are require to put a certain % of the premiums towards actual healthcare. In other words administrative fees (read profit) is capped as a % of the premium. The higher the premium the higher the profit.
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Re:Leaked Scripps records reveal automated mark-ups for hosp... by huitzitziltzin on Friday December 10, 2021 @02:56PM (#29514736)
Administrative fees =/= “profit”. That is wrong.

Administrative fees include profit, but also salaries, IT expenses, whatever other costs it takes to actually run an insurer.

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Re:Leaked Scripps records reveal automated mark-ups for hosp... by s1artibartfast on Friday December 10, 2021 @08:07PM (#29517412)
Is the rest correct?

That is to say, there is an incentive for higher overall insurance spend, because it allows for higher admin fees (including profit)

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Re:Leaked Scripps records reveal automated mark-ups for hosp... by SomewhatLikely on Friday December 10, 2021 @02:48PM (#29514646)
These ridiculous markups existed before those caps imposed by the ACA.
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Re:Leaked Scripps records reveal automated mark-ups for hosp... by SkittyDog on Friday December 10, 2021 @03:08PM (#29514878)
The ACA did not impose those caps, in the first place. It merely standardized them.

State insurance laws have mandated the same kind of caps for decades... I believe they date back to around WWII, but I don't know for certain.

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