In many industries a 7% profit margin is considered outstanding. Now we are seeing that PPACA's "Three-R's" risk transfer program (insurer "bailouts") could add a full 7% onto one carrier's total revenue.
An actuary for Regence Blue Cross Blue Shield of Oregon says the new Patient Protection and Affordable Care Act (PPACA) reinsurance program could pay a group of the company's PPACA-compliant individual plans $20.17 per member per month in 2015, or about $242 per member per year.
The PPACA federal reinsurance program reinsurance recoveries could amount to 6.8 percent of the plan's average monthly premium of $297, or a total of about $2.2 million for the plans' 9,124 members. ...
