The ONLY reason for large insurer’s hesitation has to do with their outlook on profitability. Their position or concern is simply how much money will they make. They have no concern or perspective on how much benefit can they provide to their policy holders and at an affordable price to them. This doesn’t even factor into their equation.
Perhaps they are uncertain about what happens when they have to take all the new sick people who will be applying and writing them on a premium the government will set. Maybe they will have to get some subsidies to take on all the claims they will have to pay. What a mess this whole thing is.
Pretty simple, huh, Ed? What if they lose money and go out of business? Then, their employees will not have jobs or healthcare.
Yep, simple it is, Ed…………..
Simply pitiful and against human nature.
I highly doubt any of these large carriers will go out of business anytime soon. They have hundreds of billions of dollars built up in reserves all combined, and are only interested in making a profit. They aren’t even interested in breaking even for the betterment of the country. What’s wrong with that?
Ed, I can’t believe you think it’s the insurance companies fault we are where we are. Which frankly is NOT what the government and the media is leading you to believe. After 20 years as a health insurance agent the reason premiums are so high is four fold: 1. The government has it’s nose in the business, ie; I can not sell the same policy in Georgia that I can in Indiana. Why? Government regulations. Medicare billing is another reason and I believe one of the main reasons our medical bills are so high. Why? A doctor/hospital has to bill almost 3 times the rate to get a decent amount out of Medicare. I just spoke with a client today that wondered why her doctor billed Medicare $145 but only received $85. You see, if you are a doctor who needs $85 dollars to break even or God forbid, make some money, you have to bill almost double to get the $85. Then when someone comes in for the same procedure you can’t bill that patient $85. Government regulations. 2. The second reason is that we as Americans are spoiled rotten and refuse to take on any risk of our own. The client who complains because they have to pay $30 for a medicine etc. The more risk we take as individuals, the less expensive the premium. 3. We don’t take care of ourselves and then when we have a major event we want someone else to take the responsibility and cost. I am not talking about the person who gets cancer and hasn’t smoked and got it from work etc. However there is a large part of the population that, as one of my clients has done, smoked cigarettes, crack and other drugs etc. to the point where he needed a triple bypass and a defib. put in. Costing $500,000 plus ongoing care for something caused by his own choices. Why should we pay for his care? Why should anyone pay for his care but himself? 4. The amount of people that are too lazy too work and claim some type of disability is astounding. The fact that the government hands out disability like it was candy is sickening. This increases the claims for Medicare/Medicaid which, as stated need to be higher in order to get paid anything, causing our costs to skyrocket in the end. Personal responsibility is a forgotten art.
Good post Rodney. Personally, I don’t think the carriers will be allowed to fail and DHS will re-imburse them for all the sick people that are sure to apply and immediately file claims. Many of the companies will be shills for the government on these exchanges. They will have a legion of order takers ready to take on the business.
PCIP had $5 billion in reserves………gone
And that’s one year early, and 1/3 the enrollment.
If they over price, they will have to refund money to meet the 80% MLR. If they underprice, they take all the losses and the business is at risk of insolvency. So, expect high prices due to the morons who created this law. For those states who will try to control the pricing, don’t expect any participation from insurance companies. They’ll just move on and find the path of least resistance.
No business or entrepreneur would risk their capital for 2-3% profit, that’s the average “profit” of a health insurer, and ranks 40th compared to all other industries. But the socialites on this board probably have always worked for someone else and never risked a dime of their own.
We have a President who never took Econ 101 in college and does not believe in the free enterprise system that made this country the most powerful economic force in the history of the world. Do you remember him saying – We live in the greatest country in the world. Join me as I seek to fundamentally change it.
This law is here and the best thing to do is to find a way. We are in the field everyday and we see the need. So let not profit be our only motive, lets find a way to get the people covered.
All the consumer will have to do is go online at healthcare.gov, fill out a 10 page application (probably with the help of a Navigator)and select a plan they probably can’t afford so they can apply for a subsidy as long as they make less than $94,000 for a family of four. Yes, that is right on the application. I see where the woman at the heart of the IRS scandal was appointed to do the enforcement of Obamacare. What could possibly go wrong?
Tanders, are you signed up to be a Navigator for this 10 page app for people that have no clue what to do? I hear there is good money to be made to be a government Navigator. If you are counting on a commission to sell this idiocy, that will be going away soon since the carriers have to pledge 85% to claims. 15% to cover overhead and commissions is not a happy prospect for agents. They have already cut commissions and I expect when the exchanges are set up, agents will be cut out of the loop altogether.
The ONLY reason for large insurer’s hesitation has to do with their outlook on profitability. Their position or concern is simply how much money will they make. They have no concern or perspective on how much benefit can they provide to their policy holders and at an affordable price to them. This doesn’t even factor into their equation.
It never has.
And is why we are where we are with health care.
Perhaps they are uncertain about what happens when they have to take all the new sick people who will be applying and writing them on a premium the government will set. Maybe they will have to get some subsidies to take on all the claims they will have to pay. What a mess this whole thing is.
Pretty simple, huh, Ed? What if they lose money and go out of business? Then, their employees will not have jobs or healthcare.
Yep, simple it is, Ed…………..
Simply pitiful and against human nature.
I highly doubt any of these large carriers will go out of business anytime soon. They have hundreds of billions of dollars built up in reserves all combined, and are only interested in making a profit. They aren’t even interested in breaking even for the betterment of the country. What’s wrong with that?
Ed, I can’t believe you think it’s the insurance companies fault we are where we are. Which frankly is NOT what the government and the media is leading you to believe. After 20 years as a health insurance agent the reason premiums are so high is four fold: 1. The government has it’s nose in the business, ie; I can not sell the same policy in Georgia that I can in Indiana. Why? Government regulations. Medicare billing is another reason and I believe one of the main reasons our medical bills are so high. Why? A doctor/hospital has to bill almost 3 times the rate to get a decent amount out of Medicare. I just spoke with a client today that wondered why her doctor billed Medicare $145 but only received $85. You see, if you are a doctor who needs $85 dollars to break even or God forbid, make some money, you have to bill almost double to get the $85. Then when someone comes in for the same procedure you can’t bill that patient $85. Government regulations. 2. The second reason is that we as Americans are spoiled rotten and refuse to take on any risk of our own. The client who complains because they have to pay $30 for a medicine etc. The more risk we take as individuals, the less expensive the premium. 3. We don’t take care of ourselves and then when we have a major event we want someone else to take the responsibility and cost. I am not talking about the person who gets cancer and hasn’t smoked and got it from work etc. However there is a large part of the population that, as one of my clients has done, smoked cigarettes, crack and other drugs etc. to the point where he needed a triple bypass and a defib. put in. Costing $500,000 plus ongoing care for something caused by his own choices. Why should we pay for his care? Why should anyone pay for his care but himself? 4. The amount of people that are too lazy too work and claim some type of disability is astounding. The fact that the government hands out disability like it was candy is sickening. This increases the claims for Medicare/Medicaid which, as stated need to be higher in order to get paid anything, causing our costs to skyrocket in the end. Personal responsibility is a forgotten art.
Good post Rodney. Personally, I don’t think the carriers will be allowed to fail and DHS will re-imburse them for all the sick people that are sure to apply and immediately file claims. Many of the companies will be shills for the government on these exchanges. They will have a legion of order takers ready to take on the business.
PCIP had $5 billion in reserves………gone
And that’s one year early, and 1/3 the enrollment.
If they over price, they will have to refund money to meet the 80% MLR. If they underprice, they take all the losses and the business is at risk of insolvency. So, expect high prices due to the morons who created this law. For those states who will try to control the pricing, don’t expect any participation from insurance companies. They’ll just move on and find the path of least resistance.
No business or entrepreneur would risk their capital for 2-3% profit, that’s the average “profit” of a health insurer, and ranks 40th compared to all other industries. But the socialites on this board probably have always worked for someone else and never risked a dime of their own.
Yep, profit’s the motive. And rightly so. Guess Obama should have had some brains about him in this deal.
We have a President who never took Econ 101 in college and does not believe in the free enterprise system that made this country the most powerful economic force in the history of the world. Do you remember him saying – We live in the greatest country in the world. Join me as I seek to fundamentally change it.
This law is here and the best thing to do is to find a way. We are in the field everyday and we see the need. So let not profit be our only motive, lets find a way to get the people covered.
All the consumer will have to do is go online at healthcare.gov, fill out a 10 page application (probably with the help of a Navigator)and select a plan they probably can’t afford so they can apply for a subsidy as long as they make less than $94,000 for a family of four. Yes, that is right on the application. I see where the woman at the heart of the IRS scandal was appointed to do the enforcement of Obamacare. What could possibly go wrong?
What can go wrong, is that she find out I contributed to the TeaParty!!!!!!
Tanders, are you signed up to be a Navigator for this 10 page app for people that have no clue what to do? I hear there is good money to be made to be a government Navigator. If you are counting on a commission to sell this idiocy, that will be going away soon since the carriers have to pledge 85% to claims. 15% to cover overhead and commissions is not a happy prospect for agents. They have already cut commissions and I expect when the exchanges are set up, agents will be cut out of the loop altogether.