Call the Wahhbulance: "New rule could send some insurers packing"

[n2doc]

By Parija Kavilanz, senior writerOctober 18, 2010: 2:05 PM ET


NEW YORK (CNNMoney.com) -- Industry experts say more insurers will drop health care coverage or go out of business if they are forced to meet a Jan. 1 deadline that requires them to boost the money devoted to providing care.

The Obama administration is awaiting the recommendation of the National Association of Insurance Commissioners, meeting in Orlando this week, for how and when to implement key changes to the "Medical Loss Ratio" rule.

Under health reform, beginning 2011, insurance companies will have to spend 80% to 85% of the premiums they collect on care instead of toward their own profits and overhead costs.

Prior to reform, requirements varied from state to state. In some cases, insurers didn't have to meet any minimum requirements.

For example, some plans have a 40% loss ratio. That means individuals could be paying $1 for 40 cents of care.

more

http://money.cnn.com/2010/10/15/news/economy/health_care_MLR_vote_impact/index.htm

Sorry, but if you can't stay in biz with a 15 % margin then you should get out and let others who can do so take over. Because Medicare does way better than that.

[Vincardog]

1. Don't let the door hit ya where the incorporating state split ya

The BEST thing that could happen for HEALTH CARE in this country would be if every one of these parasitic companies went out of business

[cutlassmama]

5. +1

[louis-t]

2. "What? We have to actually provide coverage?"

"How un-American!"

[leftstreet]

3. And so it begins...the Geico-ing of medical insurance

From the article

"It's survival of the fittest," she said. "Big carriers can meet the new rule."


But, but I thought the FrEe mArkeTz would force competition, would lower rates, would....

[bluestateguy]

4. They should count themselves lucky

If we had gotten single payer they would all be out of business.

But alas, the private insurance companies are graciously, out of the government's generosity, being allowed to stay in business.

They should be grateful for that and shut up.

[Greyhound]

6. K&R for another "nobody could've predicted" event.

Except for all of us that, you know, did.

This administration has clearly demonstrated that it has no interest in or will to fight for us, and so the insurers will resist every step and gain every concession they want. In the end all that will be left of this "Big Fucking Deal" will be the insurance industry blocking access to health care while raking in record profits.

Didn't anybody notice how the mandatory auto insurance scam developed?