by Javier ManjarresWhile every Republican lawmaker has railed against the Obamacare healthcare law by pointing out that it will kill jobs and take away our freedom, no one has aggressively defended insurance carriers against the new onerous regulatory regime they now find themselves under and the substantial loss of business that they would endure if Obamacare is not repealed.
While the idea of universal healthcare may seem peachy to many, the fact is that this type of blanket healthcare coverage is unsustainable- we know this.
On thing that I did not know about the Obamacare plan is that the burden that it really was for insurance carriers. I just received a letter from Florida Blue, AKA Blue Cross & Blue Shield of Florida. The letter stated the following-
The Affordable Care Act requires health insurers tin the individual and small group markets to spend at least 80 percent of the premiums they received on healthcare services and activities to improve health care quality(in the large group market, the amount is 85 percent). This is referred to as the Medical Loss Ratio (MLR) rule or the 80/20 rule. If a health insurer does not spend at least 80 percent of the premiums it receives on health care services and activities to improve healthcare quality, the insurer must rebate the difference.
Florida Blue/Blue Cross of Florida exceeded the (MLR) for 2011, this was because of the surgical procedures that I had during 2011- at least I am assuming this is the reason for it.
But what about those people who didn’t have any medical procedures in 2011? What happens to the premiums paid then? Do the rebates go back to the insurer?
Obamacare doesn’t just impose a mandate on citizens forcing them to carry health insurance, it forces insurance companies to spend insurance premiums- whether they have used the premiums paid on healthcare services or not.Obamacare limits insurance carriers’ profits and administrative costs, putting added strain on the profit margins of these insurance companies, and it will eventually force the smaller insurance companies with tighter margins out of business, which ultimately works against competition in the insurance industry.
That said, what does that mean for consumers if insurance companies are not making enough profits to expand?
By forcing these companies to rebate unused insurance premiums to individuals, insurance carriers will be forced to raise premiums, because of the increasing cost of health care services, but it’s important to remember that other factors that impact insurer’s bottom lines such as frivolous lawsuits, state regulations and taxes are still in place.
How can this be sustainable?
The answer is that Obamacare was never intended to “sustain” the private health insurance industry- it was intended to substantially scale it back so that the number of insurance companies declines and that private, non-government healthcare insurance will only be affordable for an ever decreasing segment of our society.Those who can’t afford it will have no other choice but to go into the government “pool” for the masses that will treat everyone with the same care and compassion demonstrated by your local DMV. And with more doctors and health care providers seriously contemplating leaving the profession altogether, everyone will be “covered” but many won’t actually receive the care or the procedures they need on a time-sensitive basis.
Only 58 days remain for us to change that fate- what are you doing to win persuadables to the cause of defeating Obama and his disastrous health care law?
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