Liberals Know Best

This blog post talks about how the Medical Loss Ratio has pushed insurers to spend more money on medicine instead of administrative costs.

What I see, though, is that insurers have decided it's better for them to directly pay their beneficiaries the difference than adjust their finances.

The medical loss ratio is basically the percentage of total insurance costs that go towards medicine instead of administration.  The Affordable Care Act mandated that if insurers had a MLR of less than 80%, they must refund the difference to their beneficiaries.  For example, if they spent a total of $1,000 but only $750 was spent on hospitals and drugs and $250 was spent on CEOs, advertising, etc. then they would have to refund $50 to the beneficiaries.

Liberals are of the mind that any money in excess of 20% spent outside of medicine is not socially good.  Nevermind that the insurance companies must believe it's profitable to do so, no, liberals know what's best for everyone.

Now they've mandated it, and insurance companies effectively have indicated that it's more profitable to continue spending on non-medicine despite the added cost of the refunds to its beneficiaries!