Medical Cost Ratio

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Dictionary Says

Definition of 'Medical Cost Ratio'

A comparison of a health insurance company's healthcare costs to its premium revenues. The medical cost ratio is one indicator of the insurer's financial health. Health insurance companies, like other types of insurers, are for-profit companies and must remain profitable to stay in business.

Investopedia Says

Investopedia explains 'Medical Cost Ratio'

For most major health insurance companies, a medical cost ratio of 85% or less is desirable. An 85% medical cost ratio means that a health insurer spends 85% of the premium dollars it receives on healthcare, leaving 15% for profit and non-medical costs such as administrative expenses, payroll, overhead and advertising.
Search results for

'Medical Cost Ratio'

  • How The Republican Wins Are Benefiting HMOs

    http://stocks.investopedia.com/stock-analysis/2010/How-The-Republican-Wins-Are-Benefiting-HMOs-UNH-AET-WLP-HUM1110.aspx
    ... This week, the HMO/health insurance stocks reported what was a widely expected
    lower medical cost ratio and improved margins. Aetna ...

  • Investing In Health Insurance Companies

    http://www.investopedia.com/articles/stocks/09/investing-in-health-insurance.asp
    ... 81.4%. The medical cost ratio (MCR) in Figure 2 is the key ratio investors consider. ...
    Investors like to see a low medical cost ratio. Another ...

  • Investing In The Healthcare Sector

    http://www.investopedia.com/articles/stocks/08/investing-in-healthcare.asp
    ... received from the purchasing company. The key ratio that health insurers
    report is the medical cost ratio. This ratio is akin to ...

  • Investing In Medical Equipment Companies

    http://www.investopedia.com/articles/stocks/09/investing-medical-equipment-companies.asp
    ... for growth, and the same applies to medical equipment companies. ... debt, they are able
    to cover the cost of this ... The price to earnings (P/E) ratio is a popular ...

  • Aetna's 2010 Looking Healthy?

    http://stocks.investopedia.com/stock-analysis/2010/Aetnas-2010-Looking-Healthy-AET0210.aspx
    ... ratio (MBR) for the commercial business of 85% compared to 80.6% a year ago. The
    MBR is a measure of profitability; it is calculated as the cost of medical ...

  • Universal Healthcare: A Win For Health Insurers?

    http://stocks.investopedia.com/stock-analysis/2010/Universal-Healthcare-A-Win-For-Health-Insurers-UNH-AET-WLP-CI0129.aspx
    ... According to the companies, through cost controls, higher quality of care ... the success
    of these initiatives by calculating a medical loss ratio (or medical ...

  • Withstand Market Turmoil With Healthy Aetna

    http://stocks.investopedia.com/stock-analysis/2011/Withstand-Market-Turmoil-With-Healthy-Aetna--AET-WLP-UNH-CI-HUM0907.aspx
    ... to reduce testing redundancies that cause cost overruns, exemplify ... provider space -
    to actively manage medical-loss ratios ... price-to-earnings (P/E) ratio of 8.5 ...

  • A Checklist For Successful Medical Technology Investment

    http://www.investopedia.com/articles/stocks/08/medical-tech-investment.asp
    ... (Take a look at how this effective ratio can be ... stocks in this sector, they should
    find that investing in medical technology is ... 12 Car Insurance Cost-Cutters. ...

  • Top 5 Post-Grad Degrees That Lead To High Pay - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/1011/Top-5-Post-Grad-Degrees-That-Lead-To-High-Pay.aspx
    ... it requires only a master's degree gives it the highest cost-reward ratio as well. ...
    Medical Profession The medical field has been an in-demand sector for ...

  • Healthcare IT Stocks Hitting Highs

    http://stocks.investopedia.com/stock-analysis/2011/Healthcare-IT-Stocks-Hitting-Highs-MDSO-CERN-QSII-MDRX0207.aspx
    ... of the business helps big and small medical offices with ... to trade with a forward
    P/E ratio of 23.7 ... fact that better technology will lower cost for healthcare ...

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