Adjusted premiums, fees & other revenues* were $16.9 billion, up 48 percent from the prior-year period on both a reported and constant currency basis*.
For years, the consensus among insurers was that fraud represented some small percentage of their business and they
adjusted premiums accordingly.
Second, given the uncertainties around premium levels in the nongroup market, we
adjusted premiums upward by 10% in one specification and downward by 10% in another among households without a worker or with only self-employed workers.
Generally, gain in the contract is determined by subtracting
adjusted premiums paid from policy cash values.
Specifically, we regressed the premiums on: plan type, whether an employer offers multiple plans, interactions of plan type and employer offering multiple plans, and interactions of plan type and time period; plan deductible, coinsurance, and copay amounts; whether plans offer prescription drugs, outpatient mental health benefits, inpatient mental health benefits, and maternity benefits; firm size, industry, and a set of MSA dummies and MSA dummies interacted with time period to measure the plan type and benefit
adjusted premiums in an MSA.
In response, insurers
adjusted premiums producing a rate shock that caused consumer outrage against industry and then government.
