As we know, federal risk adjustment payments are tied to losses and market share.
Moral is, a company with a relatively small percentage loss, but many members, is entitled to more money than a small company with a large percentage loss.
So, relatively small CareConnect owes $53.3M for the first 6 months of 2016, after a $41M operating loss, on top of 2015's $13.3M risk adjustment payment.
Keep in mind, they collected around $150M total for the first six months of 2016. They're paying out over 30% of collected premium in risk adjustments alone, while running at a 130% loss ratio.
N
Content of insurance-forums.net
Moral is, a company with a relatively small percentage loss, but many members, is entitled to more money than a small company with a large percentage loss.
So, relatively small CareConnect owes $53.3M for the first 6 months of 2016, after a $41M operating loss, on top of 2015's $13.3M risk adjustment payment.
Keep in mind, they collected around $150M total for the first six months of 2016. They're paying out over 30% of collected premium in risk adjustments alone, while running at a 130% loss ratio.
N
Comments
Post a Comment