Benefit Expense Ratio

An equation used to determine how big a Valentine's present you should buy your significant other. Outside of romance, it's way to figure out profitability in the health insurance sector.

The benefit expense ratio consists of a comparison between the amount the health insurer pays for health services and the amount it makes from premiums paid. It takes into account what the insurer pays for the benefits clients receive, and compares it the revenue it brings in from the policies. Hopefully for the insurers, it consistently brings in more cash than it pays out in benefits.