I absolutely agree with Gruber. Spend 80% of higher number or lower number, insurance companies can care less now about maintaining costs. These politicians who pushed this through, don't understand economics. The higher premiums go, the higher commissions go too
NPR: MLR “Could Actually Make Health Insurance More Expensive†| AHIP Coverage
The story goes on to note that, "Since 80 percent of premiums have to be spent on health care, insurance companies have less incentive to keep health care costs down. They have less incentive to negotiate with hospitals that want to charge higher rates and doctors who want to order potentially unnecessary tests."
NPR: MLR “Could Actually Make Health Insurance More Expensive†| AHIP Coverage
The story goes on to note that, "Since 80 percent of premiums have to be spent on health care, insurance companies have less incentive to keep health care costs down. They have less incentive to negotiate with hospitals that want to charge higher rates and doctors who want to order potentially unnecessary tests."