this post was submitted on 10 Dec 2024
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Honestly, I used to work in property and casualty insurance (very different from health and life insurance, but I stopped because it was in conflict with my morals), and we gambled premiums on the market. It doesn’t seem like a good idea, but my former company has been around for hundreds of years and paid out 98-102% of premiums collected for claims.
I recently learned that the ACA required at least 85% of premiums to go to claims, which is absurdly low from a P&C perspective. There have been stricter regulations for P&C for decades. I have no idea how lawmakers can justify that health insurance is so much more laxly regulated when it’s so much more important.