Biotech Values

[zipjet]

I’d like to hear zipjet’s opinion on this; my initial reaction to this provision of the Senate bill was that it could be construed as a violation of the due process clause in the US Constitution.

Another question beyond my pay grade.

FWIW - I doubt that any challenge to requiring a fixed percentage (80%?) of medical insurance revenues being spent on medical costs will be successful.

The question I have is whether there is an industry left after this. Can the industry pay out 80% (or whatever the mandate is) on medical expenses and still be viable? I would love to see some number on the income statement for the industry that broke out the data. I am sure it is out there somewhere.

Just to venture a guess: I suspect that given an 80% payout ratio that private medical insurance will become a wind-down business. Said another way, the business will no longer be sufficiently profitable (less than normal economic profit) to maintain the resources in place.

As usual, I am more interested in the economics of the problem than the legal side despite my credentials.

Jim