68 95 99 rule elicits a unique response - family member waking up…, response to question/ observation is as follows:

So. In reimbursement, what is being disbursed? The total premiums (and any other sources of income)? Standard deviation, as it relates to the mean, makes sense and I do remember it from a class in stats for teachers in training, but it didn't have to do with money, just grading practices.

What is the application in payout from an insurance perspective? Do the premiums and other income equal 100%? and is (100-68=)32% the income profit? So if the mean drops to 64% the profit rises to 36% – Greater wealth to profit organization (the insurance company) seeks lower payouts to its clients to produce greater income?

Now, Medicare is a not for profit business, but is a service to seniors who paid premiums through many years. So Medicare overhead doesn't require a low mean. Maybe 80% would be a better target mean based on statistics and overhead only. Or maybe Medicare money is coveted???!!

KEK!!