Posted on 11/24/2010 1:29:21 PM PST by ChicagoConservative27
WASHINGTON — The Obama administration issued new federal rules on Monday that will require many health insurance companies to spend more on medical care and allocate less to profits, executive compensation, marketing and overhead expenses.
The rules, intended to benefit consumers, vastly expand federal authority to direct the use of premiums collected by companies like Aetna, Humana, UnitedHealth and WellPoint. While some states have had such requirements, Monday’s announcement is the first such mandate by the federal government and grows out of the new national health care law.
“Millions of Americans will get better value for their health insurance premium dollar,” Kathleen Sebelius, the secretary of health and human services, said in issuing the rules.
(Excerpt) Read more at nytimes.com ...
Step 2: drive all the private insurers out of business.
Unconstitutional! FUBO!!
“Allocate” less to profit. They’re kidding right? Oh, I think I’ll allocate 50% of revenue to profit today! What is the right profit for an insurer, Barry? Zero percent? Two percent? And what about executive comp? Is $300,000 per year too much? The government is now regulating profit margins and salaries of the health insurance industry. God help us. There won’t be any insurers left by the time they are done.
IOW, socialism.
This will turn into a tax advantage for the insurers ~ with the Obamakkkare administrators suddenly becoming witnesses in tax court against IRS!
Can you imagine the many years of litigation that will result in this?
I read this on another board:
Look for health insurance premiums to go up as healthcare providers move towards compliance with the new ObamaCare rules regarding what percentage of premium goes towards healthcare and what goes towards administrative costs. My wife pays $412/mo premiums. Lets assume that only 65% goes towards heathcare and 35% towards administration costs. New rules will require 80% to go towards healthcare and only 20% towards admin cost. So in the example above $144.20 (35%) of the admin cost will somehow have to be trimmed to 20%. This is done simply by raising your premiums to $721 from $412 that I am paying. The admin cost of $144.2 will now be 20% of my new premiums (20% 0f $721=$144.2)meeting ObamaCare rules. The remainder %576.80 will go towards your medical care at higher cost. You will not get more medical care, but you will get the same medical care at higher rates.
Defund the Executive Branch, or tie it in knots with earmarks till this crap ends.
My hope is that he will continue his headlong plunge into changing America into a country that no longer resembles the America I grew up living and loving. Two more years of his BS and hopefully enough voters will figure out just how evil the man really is and what a cadre of evil he has used to surround himself.
Sarah Palin is sure a breath of fresh air!
I'm in the health care insurance business and saw premium go double digit andout of control when most insurers went from non-profit to for-profit status back in the mid to late 90's and spending on health care as a % went down.
Should go back to a non profit status as most insurers were for 100 years.
Health insurance carriers saw the huge run up of the stock market in the 90's and thought they would cash in...but it backfired.
Many carriers ar enow wnating to go back to non profit but it's difficult.
So many things can be done to fix healthcare without gov't managment.
Well, this all makes perfect sense to me, but why limit the magic to health care?
I spend more time at the neighborhood bar than at my doctor’s office. Why can’t Obama order them to serve me bigger beers for less money and chat me up more?
That would be change I could believe in!
New Rules Tell Airlines: Spend More on Scanners
New Rules Tell Utilities: Build More Windmills
New Rules for Automakers: Make Them Get High MPG
I could go on forever...government ruins everything.
This is the road to the USSR but making lifetime unionized bureaucrats tell business how they must operate.
This is what Boehner should de fund now.
End the Commie’s ploy now.
The other way to do it is to declare administrative costs as health costts. The nurse does the chrt as ell as insurance functions.
It is all a game.
Yes if you are not a part of the millions who are slated for the death panel directive.
Fascism
“Can you imagine the many years of litigation that will result in this?”
With us footing the bill for all sides. Primiums to the insurance company and taxes to the paychecks of both the obamacare drones testifying and the IRS kapos.
On the other hand they go after the insurers for $1 worth of admin cost. Then, on the other hand they go after the insurance company income taxes.
And on yet another spare hand they go to Congress for authority to hire even more Tax and Health professionals ~ the class of lawyers ends up with four additional routes to sucking out the substance of the people.
Domestic Communism on the march.
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