Could this be the end of the health insurance business as we know it? Is this setting things up for the single payer government run program that Obama really wants? Or is it going to be the reason why your premiums are going to be going up? Or all of the above?
Or an article in the Washington Post here.
Starting in 2011, insurers covering large groups must spend at least 85 cents of each dollar in revenue on medical care. For small groups or individual policies, (which would have higher administrative costsas well as a greater risk of adverse selection and moral hazard) the carrier must spend at least 80 cents of each dollar on medical care.
For shame..... some of these companies only spend 60 cents of each dollar in revenue on medical care - the rest is used to pay for salaries, bonuses and marketing. (other administrative expenses, like rent, probably fit in there as well).
So if they have to cut their expenses by half to meet this government mandate, how many of these companies are going to stay in this business and how many are just going to say "Fuck It" and go do something else with the financial management expertise.
Or its going to mean that health insurance premiums are going to go up - like double - in order to be able to maintain the ability to pay baseline administrative expenses while meeting the 80% loss ratio requirement. If you are currently paying a premium of $100 and 40% of that is going to expenses, that means the insurance company is paying $40 out in salaries and those evil bonuses. In order to continue doing that under Nimrod's plan, they would have to charge a premium of at least $200 so they could have that $40 to pay employee salaries. Or they could cut payroll and maybe outsource the claims handling to India. Wanna talk to some guy in Mumbai about your Blue Cross claim? Oh you already do? Maybe they'll cut expenses there and you'll get the one that doesn't speak any English.
Liberals have never understood that price fixing schemes don't work. It either results in shortages or eventually higher prices. Even Republicans had to learn the hard way with this - remember Nixon's price freezes? It don't work. But maybe Obama and company are counting on this to shove a government run single payer system down our throats. Just remember, with a single payer system, you don't have any alternatives. If you don't like the way they are handling your healthcare, too bad - ain't no where else to go.
Meanwhile President FuckNut wants to give all of the government employees a raise, paid for by the taxpayer or by the Chinese bond holders.
This country is going to be so fucked. Wake up Amerika.
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