Maine Supreme Court: Anthem's Profit Can Be Limited

[djs]

Really? Show me ANY business plan that doesn't include making at least a 3% profit and I'll show you a company that is going out of business.

You are correct that the environment is wrong for this, but I bet the doctors office that collects from Anthem makes better than a 3% profit!!!! I bet the medical suppliers that Anthem pays makes better than a 3% profit. I bet the pharma companies they pay make better than a 3% profit.

Trying to twist a projected profit to a guaranteed profit is insane.

Dan

 

[Crabcake Johnny]

...and Anthem also makes better than 3%. Read the report. It's why everyone's telling them to go screw themselves.

 

[somarco]

And Anthem can tell everyone else to go screw themselves as well. Government regulation of profits, and prices, and prices doesn't work so well.

Some folks remember the Nixon wage-price controls and what a bust that was.

 

[Crabcake Johnny]

Anthem's gonna tuck their tail just like they did in CA and CT. They're not going anywhere.

 

[djs]

Sure, but packing up isn't their only option.
What happens next?

They pay less to doctors for medical procedures. I've seen this happen in CA several times. Doctors protest, say they won't accept the new rates and won't take patients with whatever insurance. The @#$# hits the fan, things are magically worked out (in secret).

They make their money either way, its just who pays vs who gets paid.

Dan
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And I should add, sometimes I think they are okay with these denials because it lets them argue stronger with the medical providers. There simply isn't more money to be had, we tried that already.

Dan

 

[Crabcake Johnny]

djs - that was the "health insurance apocalypse" that everyone was fed, and I fell for, in Massachusetts.

Carriers go under, hospitals file BK, providers close practices, volcano's explode and dogs and cats marry.

You simply have to stop chugging the industry Kool Aid and pay attention to the facts.

And remember....Medicare's going broke...in three more years. Of course, Medicare has been going broke in "three more years" over the last 20 years.

 

[GreenSky]

And remember....Medicare's going broke...in three more years. Of course, Medicare has been going broke in "three more years" over the last 20 years.

Without printing money, isn't everything broke?

I don't quite understand your comment.

Rick

 

[YouGotMyMoney]

Rick's point is correct.

If Medicare or any government subsidized entitlement program was actually run by a publicly traded company, that did not have the capability of printing money, basically counterfeit currency then it would go out of business.

 

[Crabcake Johnny]

Rick, I fully agree but if we have been simply printing and printing more and more money, where's the inflation? Remember Carter-era inflation and interest rates? Where's that?

 

[djs]

No industry kool-aid being drank here.
I just understand basic contract negotiation. Its a game of chess, and you need to be careful if you are playing checkers.

The insurance carriers are winning the chess match, in a big way. This is mostly because they needed to change public opinion, things like this help do that.

Besides, right now, there are 2 flavors of koolaid being served. One is the industries the other is the governments. Thanks, but I'll pass. I brought my own whiskey.

Dan