In 2016, for every dollar we received in premiums and fees, we paid out 87 cents for medical care. That 87 cents on the dollar resulted in billons paid to doctors, hospitals and drug companies.
We spent another 4 cents on federal, state and local taxes. We spent 8 cents of every dollar on quality initiatives, provider support, broker commissions, marketing, maintaining compliance standards, processing claims and other administrative costs. We retained around one cent of every dollar, which went into our reserve fund – more than 75 percent of which is required by state law.