CatWoman (66,565 posts)
The Bomb Buried In Obamacare Explodes Today-Hallelujah!
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.
Why? 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.
Today, that bomb goes off.
Today, the Department of Health & Human Services issues the rules of what insurer expenditures will—and will not—qualify as a medical expense for purposes of meeting the requirement.
As it turns out, HHS isn’t screwing around. They actually mean to see to it that the insurance companies spend what they should taking care of their customers.
http://www.forbes.com/sites/rickungar/2011/12/02/the-bomb-buried-in-obamacare-explodes-today-halleluja/
http://www.democraticunderground.com/1002894046Could it be the DUmmies are finally understanding that 0bamatax is not about affordable health care, but the destruction of the insurance industry?
CatWoman (66,565 posts)
3. Hi Peggy
I'm anxiously awaiting my check!
Well as long as you get thrown a couple of bucks then you are happy.
grantcart (34,793 posts)
10. I spoke to a relative today who told me that the large insurance company he works for has left the
health care field (it was not a serious player in this area although it is a big company that most of you would recognize) because they knew that they could not get under these MLR ceilings.
This is a very very big deal.
Yep it creates jobs doesn't it?
ErikJ (991 posts)
12. Medicare does it for 3% overhead. Pigs.
PoliticAverse (3,630 posts)
16. The 3% Medicare figure is very misleading. n/t
DUmmies are so shortsighted, as long as whoever they think is the greatest evil on any particular day is getting screwed over they celebrate. They have no concept of the nightmare that single payer will bring about, they think dealing with an insurance company is rough, just wait till the secretary of Health determines that they aren't worth spending the money for a pacemaker, and Dr 0bama gives them a pain pill and sends them home.
