12/5/11, "Obamacare ‘Bomb’ Set to Blow Up Private Health Care System?" Jeffrey Anderson
"In a piece subtly entitled, “The Bomb Buried in Obamacare Explodes Today — Hallelujah!,” Rick Ungar gleefully writes in Forbes that a rarely discussed provision of Obamacare will put us on “an inescapable path to a single-payer system for most Americans….” The provision to which Ungar refers is “called the medical loss ratio, [which] 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.” He writes that this is “the true ‘bomb’ contained in Obamacare and the one item that will have more impact on the future of how medical care is paid for in this country than anything we’ve seen in quite some time.”...
The medical loss ratio will, ultimately, lead to the death of large parts of the private, for-profit health insurance industry.
“Why? Because there is absolutely no way for-profit health insurers are going to be able to learn how to get by and still make a profit while being forced to spend at least 80 percent of their receipts providing their customers with the coverage for which they paid.
“Today, that bomb goes off.
“Today, the Department of Health & Human Services issues the rules of what insurer expenditures will — and will not — qualify as a medical expense for purposes of meeting the requirement….""...
Thanks again to the GOP who gave us ObamaCare and are perfectly fine with it. ed.