Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
In 2009 Maine Blue Cross/Blue Shield (Anthem) sought approval of an 18.5% rate increase from the Commissioner of Insurance. Instead she approved a 10.5% increase and the insurer appealed that determination in Superior Court. The insurer argued that the increased that the Commissioner approved only covered operating costs and did not allow for a 3% margin for unanticiaped risk and profit. The court yesterday sided with the Commissioner ruling that Maine law does not guarantee the insurer a profit. That ruling effectively socializes the health care industry in Maine. In other words it makes the company a creature of the State rather than of the companies' shareholders. It forces the company to insure Maine's citizenry without the expectation of a return on investment.
Presumably the insurer will appeal this decision to the Maine Supreme Judicial Court. If it doesn't or if it does and it loses that appeal then I expect its only recourse will be to pull out of Maine, to be followed by Harvard Pilgrim and Aetna--the only other insurers selling health insurance in the state. Then the Left will have achieved their goal: to have single-payer insurance--the single-payer being the State of Maine.
Not surprisingly the ground is being prepared for the Maine experience to be nationalized under Obamacare. The ink is barely dry on Obama's signature and the Dems in Congress have introduced a bill to amend Obamacare to give the federal government greater control over health insurance rates nationwide. So the federal government now controls what products insurers can sell and now they seek to control how much insurers can charge for those products. If a 3% profit margin is deemed excessive in Maine rest assured that will be the standard nationally. Now ask yourself the question: if you have money to invest why would you park it in insurance at 3% if you can get 5% return on tax-free municipal bonds? Remember when Ross Perot talked about a large sucking sound if NAFTA were passed? It won't compare to the sound caused by investors abandoning insurance companies in favor of sounder investment opportunites. And that means the demise of private health insurance. I expect many to applaud this and, of course, that was the intent of Obamacare all along. And people complain when Obama is called a socialist!
You are exactly right. This was the true intent of Democrats all along. First they buy votes. Then they pull a parliamentary technicality to get the law signed. And now they're doing an end-around to get the law that they really wanted.
This is why I will vote a straight-ticket fiscal conservative ballot in November. I'm willing to sacrifice a few ideals in order to get some legislators in office who TRULY view liberal spending as a national security threat.
Good for the Commissioner and court for protecting the public from a rapacious insurance company.
And then the insurance company leaves Maine, thus further stifling competition, thus further increasing rates. When those rates increase, and the Maine insurance board steps in again, another company will leave Maine, and the cycle repeats.
Do you understand the ramifications? Are you a supporter of your tax dollars paying for your neighbors propensity to go to the doctor everytime he needs aspirin or a band-aid?
I understand that the insurance company wants Maine to guarantee them a risk free profit. That isn't capitalism or free enterprise. Capitalism is all about putting you money at risk. In these circumstanes there is no difference between state supplied insurance or the private company.
In 2009 Maine Blue Cross/Blue Shield (Anthem) sought approval of an 18.5% rate increase from the Commissioner of Insurance. Instead she approved a 10.5% increase and the insurer appealed that determination in Superior Court. The insurer argued that the increased that the Commissioner approved only covered operating costs and did not allow for a 3% margin for unanticiaped risk and profit. The court yesterday sided with the Commissioner ruling that Maine law does not guarantee the insurer a profit. That ruling effectively socializes the health care industry in Maine. In other words it makes the company a creature of the State rather than of the companies' shareholders. It forces the company to insure Maine's citizenry without the expectation of a return on investment.
Presumably the insurer will appeal this decision to the Maine Supreme Judicial Court. If it doesn't or if it does and it loses that appeal then I expect its only recourse will be to pull out of Maine, to be followed by Harvard Pilgrim and Aetna--the only other insurers selling health insurance in the state. Then the Left will have achieved their goal: to have single-payer insurance--the single-payer being the State of Maine.
Not surprisingly the ground is being prepared for the Maine experience to be nationalized under Obamacare. The ink is barely dry on Obama's signature and the Dems in Congress have introduced a bill to amend Obamacare to give the federal government greater control over health insurance rates nationwide. So the federal government now controls what products insurers can sell and now they seek to control how much insurers can charge for those products. If a 3% profit margin is deemed excessive in Maine rest assured that will be the standard nationally. Now ask yourself the question: if you have money to invest why would you park it in insurance at 3% if you can get 5% return on tax-free municipal bonds? Remember when Ross Perot talked about a large sucking sound if NAFTA were passed? It won't compare to the sound caused by investors abandoning insurance companies in favor of sounder investment opportunites. And that means the demise of private health insurance. I expect many to applaud this and, of course, that was the intent of Obamacare all along. And people complain when Obama is called a socialist!
The same thing would be happening to any business, if they all had to get permission from the government to adjust the consumer costs for their goods and services.
I understand that the insurance company wants Maine to guarantee them a risk free profit. That isn't capitalism or free enterprise. Capitalism is all about putting you money at risk. In these circumstanes there is no difference between state supplied insurance or the private company.
Jaggy, there is no such thing as "risk-free profit" anymore. Insurance companies are on the cusp of being forced to accept pre-existing conditions. Have you digested the fact that billions of dollars of liability (risk) are about to be dumped into the system? Where do you think that money will come from? Yep, you guessed it. That pesky rate increase that you abhor.
It's coming Jag. Bet on it. And if Democrats are successful in limiting rate increases, then the Government will step in and say "We told you so, you can't trust private insurance companies, so we have no choice but to nationalize healthcare." And then your taxes will go through the roof.
I understand that the insurance company wants Maine to guarantee them a risk free profit. That isn't capitalism or free enterprise. Capitalism is all about putting you money at risk. In these circumstanes there is no difference between state supplied insurance or the private company.
Ahh WRONG..
They want the freedom to be ALLOWED to make a profit, not risk free, nor guaranteed..
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
