Smaller profit margins = merger in anticipation of ACA

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An interesting article in the Washington Post points out a troubling trend for children's mental health. Smaller profit margins under ACA. According to the article, "Because insurers are facing new pressures to contain overhead — an ACA provision known as the medical loss ratio requires them to limit spending on administrative costs and salaries to 20 percent, so they can spend at least 80 percent of premium dollars on medical care — they will be looking for ways to reduce overhead expenses. Acquiring smaller insurers to boost enrollment could be the way to do it." 

So what does this have to do with the Network? Well, everything. We deal with the bottom line end user. As you begin to see more and more mergers like this that are driven by profit margin you need to be asking yourself (and your insurance providers) what impact that will have on the quality and variety of care options for youth with serious emotional challenges and their families. The Network has grave concern that we are headed right back to the days of traditional inpatient and outpatient care when we know from 25 years of a systems of care approach that in many cases, alternative approaches work best.

Read the article here and expand your thinking folks.


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