Is it true that in the long run insurance (Obamacare) companies can make profits at the expense of their customers?© BrainMass Inc. brainmass.com October 25, 2018, 9:11 am ad1c9bdddf
It is true that in the long run insurance companies can make profits at the expense of their customers. First, several plans on Obamacare exchanges will not be low cost. The insurers will get big profits. The new law has three prongs namely reinsurance, risk corridors, and risk adjustment. The Health and Human Services Department will reimburse insurers for the cost of covering sick consumers. There are risk corridors that protect the overall ...
The answer to this problem explains how insurance companies will profit from Obamacare. The references related to the answer are also included.
Choosing Performance Measures
The president of the Canby Insurance Company has just read an article on the balanced scorecard. A company has a balanced scorecard when there is a set of performance measures that reflect the diverse interests and goals of all the stakeholders (shareholders, customers, employees, and society) of the organization. Presently, Canby Insurance Company has only one performance measure for the top executives: profit. The board of directors claims that profit as the sole performance measure is sufficient. If customers are satisfied and employees are productive, then the company will be profitable. Any other performance measure will detract from the basic goal of making a profit.
Explain the costs and benefits of only having profit as a performance measure.