I note that the Healthy Wisconsin plan apparently tries to control what qualified heath care networks can do with their money. It says that 92% of the revenues that a qualifying network receives under the plan must be spent on providing health care or on things that the network reasonably believes will improve care or reduce cost.
I assume that the idea is to control profits and expenditures on things like advertising. What's wrong with that?
One thing is that, like making payment for health care a cost of employment, it distorts the market. In this case, the impact may be to divert capital from health care in Wisconsin by limiting the return that can be earned. The response that 8% is enough is just an ipse dixit
Is an 8% margin (actually probably something less than that) enough to compensate for the risk involved? Is it enough to attract the capital away from other more profitable uses? I don't know and neither do the Senate Democrats.