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SAN ANTONIO
MEDICINE

The Float most revealing a doubling of profits in 2020 References
According to Warren Buffet, “The Float” is compared to 2019. Meanwhile, premiums 1 “A Brief History of Medical Coding” by Ben
Castleberry 5/11/16 Aviacode
the money the insurance company gets to have increased 57% since 2009. United 2 “How to Fight Back When An Insurer Denies
hold onto between the time patients pay pre- Healthcare reported a Medical Loss Ratio Your Claim” 1/17/17 McKennon Law Group
California Insurance and Life, Health, Disabil-
miums and the time the insurer must pay out (their phrase for The Float) of 70.2%, ac-
ity Blog
8
claims on their policies. Insurers receive pre- counting for record profits in 2020 during the 3 “Six Ways to Avoid Having a Healthcare Claim
10
miums up front and pay claims much later, pandemic. There is no dominant entity to Denied” by Orly Avitzur MD Consumer Re-
ports 12/14
leaving large sums to be invested. If premium set administrative standards because the U.S. 4 “Transparency in Coverage for 2020 Plan Year”
income exceeds the total of expenses and health care system is so fragmented. Mean- 1/20/21 by Karen Pollitz and David McDer-
mott Kaiser Family Foundation
eventual losses, the insurer registers an under- while, insurers run amok, minimally regu-
5 Sandy Praeger Kansas Insurance Commissioner
writing profit that adds dramatically to the in- lated, collecting overwhelming profits at the 2003-2015 LA Times 1/17/17
9
vestment income produced by The Float. expense of physicians, hospitals and patients. 6 “How Insurers Deny Legitimate Claims” McKen-
non Law Group PC California Insurance Liti-
High volume denials based on idiosyncratic This dishonorable behavior has long been gation Blog
edits, made-up rules and contrived audits are characteristic of the health insurance industry, 7”Software Helps Insurers Profit From Denials” by
David Rosenfeld 6/14/17 Pacific
commonplace. The rationale for insurance and the likelihood is great that these deceitful
Standard/Grist
companies to not pay claims is obvious. practices will continue indefinitely. 8 “Warren Buffet Explains the Genius of the Float”
by Jacob Goldstein 3/1/20 Texas Public Radio
NPR
Conclusion Neal S. Meritz, MD is a retired 9 “Are Healthy Care Companies Profiting From
Many in the U.S. are struggling as a result Family Practice physician and a The Float?” By Milt Treudenheim 4/17/97 The
New York Times
of the pandemic, but health insurance com- member of the BCMS Publications
10 “Transparency in Coverage for 2020 Plan Year”
panies are thriving. Multibillion dollar profits Committee. Kaiser Family Foundation 1/20/21
are reported by all the large insurers, with

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