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This nugget may be a lump of coal

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The nugget diary currently on the Rec List asks us to consider that there may be a really important goody in the current health reform compromise that we are neglecting:

there was a possibly huge little nugget in the AP story that would equate to 'real reform' .er.. that has the insurers freaking out much more than the public option ever did.

"The deal reached Tuesday puts even more requirements on insurers by requiring that 90 percent of premium dollars be spent on medical benefits, as opposed to administrative costs, officials said."

While mandating a higher medical loss ratio is probably a good idea, I'd love to believe that this has insurers freaking out. Sadly, in the context of current reform efforts, I don't believe that.

It is not unlikely that insurers will be able to make profits as high, or higher, than they are making now.


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