This has been an interesting story that I have been following lately.
Essentially, health care insurance HMO's that contracted with Minnesota for coverage of subsidized patients (500,000), netted profits of 3.8% in 2010, which was up from 2.6% in 2009.
This resulted in millions in addtional profit. UCare already gave back 30 million last month to the state. It is estimated that if profit caps were in place, the state could have netted 85 million last month alone.
Facing a 5 billion dollar deficit, this comes as good news to the State. Insurers are worried, as profits have varied considerably over the years, although, after being confronted, they finally admitted that perhaps they were making too much in the way of profits, and agreed to a 1% limit on profits for 2011.
Public relations being what it is........LOL.
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