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.
Because there is absolutely no way for-profit health insurers are going to be able to learn how to get by and still make a profit while being forced to spend at least 80 percent of their receipts providing their customers with the coverage for which they paid. If they could, we likely would never have seen the extraordinary efforts made by these companies to avoid paying benefits to their customers at the very moment they need it the most.
So, can private health insurance companies manage to make a profit when they actually have to spend premium receipts taking care of their customers’ health needs as promised?
Not a chance-and they know it. Indeed, we are already seeing the parent companies who own these insurance operations fleeing into other types of investments. They know what we should all know – we are now on an inescapable path to a single-payer system for most Americans and thank goodness for it.
http://www.forbes.com/sites/rickunga...day-halleluja/
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If this is really a step towards a hard-core no-profit public insurance option, "Medicare for Everyone", then Hallelujah!
Obama's assault on the private sector knows no bounds, how dare he try to manipulate the profits of these private companies! Everything is for profit, everything is on sale...this is the core of America and this obamination of an Administration wants to turn us into Canada. that!
Obamination . . . I like that.
So he's trying to bankrupt insurance companies. No new news here.
Could you imagine if home owner insurance companies were limited like this, then a storm rips apart homes, and the insurer didn't collect enough money to pay damages?
I have a neighbor who's wife had a serious injury. Her surgeries and hospital bills alone could have possibly wiped out past years profits from then insurer. If they were required to return past money, then i see the possibility they would have never had the financial assets to pay for her injuries.
Yes, so do I:
post in 2009
You think serious medical injuries are something to laugh at?
tbh, Stringer_Bell bringing the goods again...
That was a ing terrible post, even for 2009. Why would you want to bring something like that up? Also, abysmal use of "obamination." WTF, WC?
very subjective and they are letting the insurance companies write the definition"actual medical care"
Insurance companies have "making a profit while being heavily regulated" down to a science.Because there is absolutely no way for-profit health insurers are going to be able to learn how to get by and still make a profit
They do this every year. Instead of charging $600/month and sending you a check for $1200 at the end of the year. They just charge you $500/month.send their customers a rebate check representing the amount in which they underspend on actual medical care
Bomb diffused. Go back to your lives citizens.
"Obama's assault on the private sector "
for-profit insurance and the health care sector have been assaulting Human-Americans and sucking them dry for decades.
Govt is the option of countervailing power. A hard-core public insurance would certainly up a lot of gouging for-profit insurance companies that really need to be ed hard.
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