https://www.motherjones.com/politics/2019/08/trumps-anti-obamacare-insurance-plans-are-ripping-people-off/?fbclid=IwAR3kurxRqLXFBgKdH9Phdu7ECCATqZVLPsaD__lzJeNMu7OlpNpuhEEatR4
"On average, the report found that, among the five health insurers that earn the most in short-term insurance premiums, 39.2 percent of premiums were going to pay for patients’ medical care. “Short-term health plans’ loss ratios are lower because they don’t cover nearly as many benefits,” Modern Healthcare writes. “Unlike Affordable Care Act-compliant plans, short-term plans can deny coverage to people with pre-existing health conditions and charge more based on health status. They are not required to and often don’t cover the 10 essential health benefits, including maternity care and prescription drugs.” ACA-compliant plans are required to spend 80 percent of premiums on medical care. Essentially, Obamacare set a cap on the percentage of profit health insurance companies can make off premiums, forcing them to spend the vast majority of their funds on actual medical services. If an insurance company ends up charging higher premiums than that 80 percent rate, the insurers have to send out rebates."
