I don’t like Obamacare but am not sure I follow this logic.
He is saying that the cap on administrative expenditures will force insurance companies to cut commissions to brokers. And without brokers out to shop around for the best deals, employers won’t be able to get affordable coverage.
But the advent of the internet and Expedia.com cut commissions to travel agents by 90%. Most of them are out of business now, but the cost of airline travel did not skyrocket.
Insurance doesn't work like that. The only reason that insurance agents and brokers exist is because insurance is difficult to sell and voluntary. The size of the commission is based on the difficulty of the sale.
We do have free market equivalents of insurance exchanges and they not only aren't competitive, but end up pricing themselves out of the market. They still need brokers to sell them as the free market allows other companies set lower prices than the exchange. For instance: In California, there is a state run but not state subsidized insurance exchange. The companies offering coverage in these exchanges actually charge more for coverage than those companies charge for going direct to them with a broker.
How is he going to cap the cost to the secretary that has to fill out all that extra paper work?
That is a 30 min job today for Medicare billing.
Not to forget the CURRENT $60 BILLION in FRAUD, WASTE AND ABUSE.
Medicaid isn’t much better with the fraud, waste and abuse.
How is he going to get doctors to accept Medicare patients when all the doctor is getting is half pennies on the $1?
Guess CONSCRIPTION would have to be considered.