The Bomb Buried in Obamacare Goes Off Today (health care, premium, how much)

[BlueWillowPlate]

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.

Sooo...what's going to happen?

I am not going to pretend to be an expert on this topic.
I do know that my husband and I are now paying twice as much for health insurance, while receiving far less coverage than we once had.

Maybe the same careful scrutiny given to the fine print in my premiums will also be given to those who make my healthcare decisions for me.

[subsound]

That;s horrible, an insurance company must spend a majority of its money on medical care instead of bonuses for execs?

We should get rid of that right away, let them screw patients for pay.

[Mircea]

Originally Posted by BlueWillowPlate

Sooo...what's going to happen?

I don't know. Depends on how much they spend on administrative costs.

If you look at the June 2011 SSA report, they paid out $577.4 Billion in benefits at a cost of $3.5 Billion.

Effectively, it costs 6/10ths of 1 cent ($0.006) to pay $1 in benefits.

If you look at OADI (Social Security Disability), they paid out $124.2 Billion at a cost of $3.0 Billion.

That's about $0.024 to pay $1 in benefits.

In 2010, Medicare spent $244.5 on payments and $3.5 Billion on administrative costs. That comes to about $0.013 per $1 in benefits paid.

One of the things that both reports make clear, is that their administrative costs are comparable to private industry. In other words, the cost for government to administer those benefits is in the ball-park with private industry.

I don't really see how these private health care plans would be greatly affected.

Overhead is basically the same. If it costs $0.08 sq ft for maintenance and $0.11 sq ft for security for government, it costs about the same for private enterprise. Social Security, HUD, OSHA and many others rent space "on the economy" and they pay the same rates and have the same costs as any other business.

If anything, these companies might have to cut back on advertising to meet the guidelines. I don't think the US is going to burn down, fall over and sink into a swamp because of that.

[ringwise]

Originally Posted by subsound

That;s horrible, an insurance company must spend a majority of its money on medical care instead of bonuses for execs?

We should get rid of that right away, let them screw patients for pay.

The federal government has no right to tell a private company how to run its business. That would be socialism.

[florida.bob]

Originally Posted by BlueWillowPlate

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.

Sooo...what's going to happen?

I am not going to pretend to be an expert on this topic.
I do know that my husband and I are now paying twice as much for health insurance, while receiving far less coverage than we once had.

Maybe the same careful scrutiny given to the fine print in my premiums will also be given to those who make my healthcare decisions for me.

This is one of the BEST things in the new HC Law.

[alphamale]

Originally Posted by subsound

That;s horrible, an insurance company must spend a majority of its money on medical care instead of bonuses for execs?

We should get rid of that right away, let them screw patients for pay.

Guess what?

The government is the biggest denier of medical treatment.

What now?

[workingclasshero]

Originally Posted by subsound

That;s horrible, an insurance company must spend a majority of its money on medical care instead of bonuses for execs?

We should get rid of that right away, let them screw patients for pay.

basics facts...insurance is not care..never was..insurance is risk managment

[subsound]

Originally Posted by alphamale

Guess what?

The government is the biggest denier of medical treatment.

What now?

Really? Prove it.

[florida.bob]

Originally Posted by alphamale

Guess what?

The government is the biggest denier of medical treatment.

What now?

Umm, more of the premium dollars going to medical care services.

[GregW]

What is it called when business can tell the government how and what to govern?