An interesting article over at Forbes from December 2nd, which highlights one of the interesting parts of Obamacare, one that was debated back during the time Obamacare was being pushed over economic policy, but has since been forgotten as people focus on the individual mandate. The article writer, Rick Unger, starts out by telling us that the legislation is not that bad, then
(Forbes) There is, however, one notable exception – and it’s one that should have a long lasting and powerful impact on the future of health care in our country.
That would be the provision of the law, called the medical loss ratio, that requires health insurance companies to spend 80% of the consumers’ premium dollars they collect—85% for large group insurers—on actual medical care rather than overhead, marketing expenses and profit. Failure on the part of insurers to meet this requirement will result in the insurers having to send their customers a rebate check representing the amount in which they underspend on actual medical care.
This is the true ‘bomb’ contained in Obamacare and the one item that will have more impact on the future of how medical care is paid for in this country than anything we’ve seen in quite some time. Indeed, it is this aspect of the law that represents the true ‘death panel’ found in Obamacare—but not one that is going to lead to the death of American consumers. Rather, the medical loss ratio will, ultimately, lead to the death of large parts of the private, for-profit health insurance industry.
As Unger points out, there is no possible way for the insurance companies to continue to operate when they have to spend 80-85% of the money they collect on medical care. It’s a financial impossibility. How do they pay their employees? How do they pay for their property? Pay for the paperwork, much of it increased because of government regulation? Advertise their services? Pay their stockholders? Simply staying in business will be impossible.
Whether you are a believer in the benefits of single-payer health coverage or an opponent, mark this day down on your calendar because this is the day seismic shifts in our health care system finally get under way.
If you thought that the Obama Administration chickened out on pushing the nation in the direction of universal health care for everyone, today is the day you begin to understand that the reality is quite the contrary.
This is no a bug of Obamacare, but a feature. During the long Obamacare debate prior to passage, people said that this measure would kill the private for-profit insurance industry (not too mention the number of people this would put out of work), and that was the point of the measure, like so many others. If there are few or no private insurers, well, then, of course the federal government would have to step in, right?
And lest anyone think the Forbes writer is sympathetic to the insurance companies, alas, no. He thinks it would be great if they all went out of business. This is why, as I’ve said, Republicans/Conservatives cannot focus simply on replacing Barack Obama, but must retake the Senate and hold the House. Obamacare must be repealed before it does too much damage to matter.
Crossed at Right Wing News and Stop The ACLU.
Forcing us into the single-payer system has been the plan all along.
Another part of the bill is a requirement that employers cover contraception costs.
Some states have a similar law, but many do not.
The result is that religious employers are balking at having to provide coverage for something against their religious beliefs. The counter argument from the government is that the religious groups don’t have the right to impose their religious beliefs on their employees. Yet the government saying it can tell the religions to go against their beliefs is not a problem.
As for the operating costs as a percentage, that is a clear case of the government stepping into the free market and demanding it do what the government will not as Medicare costs per insured person are higher than that of a private insurance company.
They’ll meet the requirement, by putting more paperwork costs on the Doctors and cutting back on staff. Private insurance does a more thorough job fighting fraud which keeps “medical” costs down, if they are forced to cutback in that area they’ll just charge more.
My son in law is a disabled vet. He goes to the VA. He was injured during the 1st gulf war and his care was always excellent.
However over the last decade as more and more and more vets flood into the system his care which was always good has become patchwork and inefficient as the VA with its limited resources is forced to take on more and more and more.
In the end the government is going to be running our entire medical industry and they are PISS POOR, INEFFICIENT and terrible at almost everything they touch.
Be afraid….be very afraid as the pseudo commies get their hands on more and more of our government so they can dictate to YOU and control YOU and mandate to YOU what THEY feel is BEST for YOU.
Be afraid….be very afraid……..
And businesses are!!!…thats why unemployment is still 9 percent even though the economy is recovering.
I personally am terrified….approaching 65 one only has to look at the VA or ANY socialist countries health program and realize that all the rich people fly to America to get treated………
and of course we know why? RATIONING.