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    Side Effects: Future of Private Insurance Rests in Secretary Sebelius’ Hands

    Obamacare requires insurers to meet a federally-specified medical loss ratio.  That is, they must spend a certain percentage of premiums on medical expenses.  The remainder can be used to cover administrative costs and, if there’s anything left, profits.  But if insurers don’t shell out enough in medical losses to meet … More

    Side Effects: What’s a Medical Expense?

    Vague statutory language can make laws hard to interpret and enforce. And that’s certainly true of the recently-passed Patient Protection and Affordable Care Act. Exhibit A: Obamacare requires insurers to spend at least 85 percent of group market premiums–and 80 percent of individual market premiums–on medical expenses.  The remainder goes to administrative costs and profits. But … More