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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives

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To: Qualified Opinion who wrote (91078)	3/26/2017 8:42:12 PM
From: Hawkmoon	Read Replies (3) of 218762

Per U.S. regulations (law), insurance companies must spend at least 85% of insurance premiums on medical costs. So.. the bigger the amount that equates to 85%, the bigger their 15% profit becomes.. Saw the same thing in Iraq with KBR.. They would sell the Army a contract for 100,000 sandbags ($1 per bag).. Since they were the prime and limited to a 10% profit, they made sure that the actual costs of those sandbags were much higher than if they had been competitively bid out. Their Iraqi sub-contractors essentially paid $10/day to their workers to fill those bags. They made obscene profits, but KBR didn't care because they were interested in the $10k in profit. If they had bid out the contract for what is actually should have cost (at least 50% less, their profit would have been $5,000) So... should we think of the medical providers as the insurer's subcontractors, tasked with keeping medical costs high enough so that 15% increases in actual amount from year to year?? Hawk

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