How does the new mandated health care reform affect SOA?

[FormLetter]

You're generally right in your point that health insurance companies catch all the flack despite their role as basically just calculating the expected cost and charging a bit above that.

[wolferine]

Originally Posted by chrisjkeeney

So please tell me your thoughts and reasoning behind it because I am interested in knowing and seeing if my opinions are far off.

No you are spot on. That is not to say that an insurance company never did anything wrong, like deny a claim they should have paid. It happens rarely. But the liberals use those anecdotal stories to create demons to advance their political agenda.

If Obama has a public policy where he wants to offer insurance to 30 million people with no insurance then he needs to sell that case to the American people. He needs to raise taxes to pay for it. But instead he demonizes insurance companies (like he demonizes the energy industry and anyone who disagrees with his agenda and progressive policies).

Insurance companies are not obligated to cover people who can not afford insurance. Like you say they simply pass along the cost to consumers. To the extent that they can save money they would profit more and sell more business.

But the government cuts Medicare and Medicaid funding and then providers raise commercial rates. And then people like Obama whine about the cost of commercial insurance. The real free rider problem is not someone who shows up in the ER with no insurance (small potatoes), it is Medicaid and Medicare programs.

[wolferine]

The other free riders are the one Obama creates by expanding Medicaid to 138% of FPL and by subsidizing families of 4 making $90,000 per year.

[daysofmay]

Originally Posted by wolferine

Did you bother to read the link?

I did. All I see is the author being confused by some data he doesn't seem to understand, and he clearly stated he is in Romney's side, so my conclusion is that the article is highly biased and isn't a good read.

That's why I'm asking for further explaination.

Also, I don't think Obama did anything like demonizing the insurance companies. He asked the insurance industry for input and support of the bill.

[Locrian]

Originally Posted by daysofmay

Also, I don't think Obama did anything like demonizing the insurance companies.

Maybe there’s a discussion as to whether Obama demonized the insurance industry – I listened to several of his town hall speeches at the time and felt he cast insurance companies in a poor light. Gibbs, the press secretary at the time, certainly wasn’t kind to the industry. I would say Obama demonized the industry, but I won’t argue with you if you disagree.

However, I can say with great certainty that the Democratic Party demonized the insurance industry. Pelosi called health insurance companies “immoral villains”, for goodness sake.

[daysofmay]

Oh, I didn't catch that. Thanks for the info.

And for those who's interested in cost control, here's a must-read article about that:
http://www.newyorker.com/reporting/2...a_fact_gawande

For the effect of reform on health care, I am optimistic. The experience in MA does seem to indicate that the reform is working. The effect on employment of actuary seems good as well. I heart United Care or one of the big, national health insurance company has a team of 80 actuaries dedicated to health care reform, so there's a lot more demand now.

[wolferine]

Originally Posted by daysofmay

Oh, I didn't catch that. Thanks for the info.

And for those who's interested in cost control, here's a must-read article about that:
http://www.newyorker.com/reporting/2...a_fact_gawande

For the effect of reform on health care, I am optimistic. The experience in MA does seem to indicate that the reform is working. The effect on employment of actuary seems good as well. I heart United Care or one of the big, national health insurance company has a team of 80 actuaries dedicated to health care reform, so there's a lot more demand now.

United may come out all right. But that does not mean it will be good for the profession.

Ultimately, they may end up as the one or two carriers who administer the government option on the exchange.

Meanwhile, all the local and regional insurance companies will be out of business. Probably Humana and Cigna will bite the dust too. And you can forget all the consulting jobs that work for employer groups. Short term, it is a bonanza and there will no shortage of work. But after 2014 as employers exit retiree coverage and then moving on to 2018 when they exist for active employees to avoid the excise tax, there will simply be a government exchange and only a couple insurance companies left. If you think that is good for the profession, then you're nuts.

[wolferine]

Originally Posted by daysofmay

Oh, I didn't catch that. Thanks for the info.

And for those who's interested in cost control, here's a must-read article about that:
http://www.newyorker.com/reporting/2...a_fact_gawande

For the effect of reform on health care, I am optimistic. The experience in MA does seem to indicate that the reform is working. The effect on employment of actuary seems good as well. I heart United Care or one of the big, national health insurance company has a team of 80 actuaries dedicated to health care reform, so there's a lot more demand now.

Also, I did not read your link. But I suspect it says MA had a low increase for health care the last year or two. So what. They still have among the highest cost in the country. Look at Florida rates vs MA rates. The rest of the country is going to have real big increases to catch up with MA. And that won't make people happy. I have seen legitimate estimates that for most states, they will see increases of 18% to 50% in individual and small group markets. That's due to guaranteed issue and modified community rating. Buckle your seat belt. And I know who Obama will blame, evil insurance companies. When, in fact, he should look in the mirror, evil politicians destroying capitalism, destroying your freedom, nationalizing a large part of the economy.

[Wigmeister General]

Originally Posted by wolferine

Also, I did not read your link. But I suspect it says MA had a low increase for health care the last year or two. So what. They still have among the highest cost in the country. Look at Florida rates vs MA rates. The rest of the country is going to have real big increases to catch up with MA. And that won't make people happy. I have seen legitimate estimates that for most states, they will see increases of 18% to 50% in individual and small group markets. That's due to guaranteed issue and modified community rating. Buckle your seat belt. And I know who Obama will blame, evil insurance companies. When, in fact, he should look in the mirror, evil politicians destroying capitalism, destroying your freedom, nationalizing a large part of the economy.

The irony is that the MLR = 80% or 85% will be the key. Insurers will show their books and say, "hey, we're just charging what we need to charge to comply with the law."

[wolferine]

Originally Posted by Wigmeister General

The irony is that the MLR = 80% or 85% will be the key. Insurers will show their books and say, "hey, we're just charging what we need to charge to comply with the law."

It will be interesting to see what happens when this system comes unglued.

The unaffordable act will increase cost of insurance by 20% or more. The government unfunded subsidies will make it more affordable for the poor and less affordable for the middle and upper class. More class tension which is what Obama and his ilk feed on.

Cost will go up as will insurance company profits and pharma profits for the few and well lobbied. But it will further strain the middle class to a tipping point. It is hard to go backward once the momentum is rolling. So the liberal pressure will be (as it has been) to add a public option. Maybe a Medicare type option. Of course that will be the transition to the end of health insurance and on to single payer. And once you have single payer, then the real cuts can begin on physician and hospital payments which result in wait times and true rationing of care for all.

PPACA already has supposed cuts of 20% or more and billions of dollars in Medicare spending. We will see how that goes with their lobby. Divide and conquer, first the insurance companies and next will be the doctors and hospitals on the chopping block. All to solve a perceived statistical problem, we spend more on healthcare than other countries. Duh, we have more we spend more. In the new world we will spend less on healthcare and more on bureaucrats and government.