Tuesday, July 3, 2012

ObamaCare: A 'Death Panel' For Private Insurance?

Rick Ungar of Forbes explains why he thinks the answer is "yes":

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.

That clause, says Ungar, ultimately makes offering private insurance unprofitable. Given how the biggest thieves in the modern business world operate, I have my doubts. But the article is worth reading.

(H/T ellroon.)

1 comment:

  1. i also have my doubts. but if we both turn out to be wrong and the ratio is not high enough for the companies to turn a healthy profit, you can bet their lobbyists will slip rider to change to the ratio in the next highway or farm bill.



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