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HEALTH CARE: Insurers fear cut in profits

Letter by John Bartz, Olympia on April 4, 2012 at 9:43 am with 7 Comments »
April 4, 2012 10:07 am

Why does the medical insurance industry so adamantly oppose the Affordable Care Act? After all, the act would require 22 million currently uninsured Americans to purchase medical insurance. You’d think that the industry (a legal cartel) would welcome 22 million new paid customers for their very profitable insurance enterprise.

The answer lies not in the one provision of the ACA that is the center of public attention (mandatory insurance coverage), but in another provision that is, conveniently, escaping much attention. That other provision would require the medical insurance cartel to spend “no less than 80 percent of medical insurance premium revenue on medical care for the insured.”

Currently, none of the cartel expend anywhere near 80 percent on medical care for the insured. To do so would interfere with their loaded “administrative overhead expenses” (wink-wink), not to mention their extremely high net profits.

The U.S. Supreme Court will soon demonstrate once again whether or not it (like Congress) serves Big Money. The justices’ early arguments focused on whether they should rule on just the constitutional issues put before them or on the entire act. The medical insurance cartel wants the entire act quashed, so their mega profits can continue to roll, unfettered by any silly notions about efficiency or accountability in their private-sector business.

While Americans focus their attention on the mandatory insurance coverage provision of the act, Big Money is (as usual) laughing all the way to the country club.

Leave a comment Comments → 7
  1. You nailed it John, and they have bought and paid for the GOP and it’s mindless base who, for whatever reason, can be counted on to vote against their own best interests.

  2. BlaineCGarver says:

    Kluer, Obama Care is NOT a GOP supported agenda. As a matter of fact, you will find a great deal of support for a one payer system among the conservatives. You can start with me.

  3. BlaineCGarver says:

    Personally, I think Health Insurance should go the way of the buggy whips, and a non-profit CoOp funded by a national sales tax that EVERYone pays into, ie, no more welfare bums, lazy porch drunks, etc get free what half of us pay for.

  4. cclngthr says:

    With the current system, insurance companies can arbitrarily deny coverage for needed treatment, and this does not automatically mean people are welfare bums. Example, I was refused coverage by my employers 3 plan choices. The 4th choice would cover me, at a cost of $2,100 a month with a $2,000 deductable. Their reasoning is I have a condition I was born with; something they are allowed to do. Without this ongoing treatment, I would have been either bedridden or better of dead according to the insurance industry.

  5. cclngthr? On this we agree- so sorry that happened to you, its not right and its putting profit ahead of service that ou pay for.

  6. menopaws says:

    Great letter and yes, he nailed it. The act does require that 80% of the premiums go to patient care…….No wonder they keep spreading fear and lies around—-that profit margin is the name of the game…….Just like Exxon and BP—profit rules–patient care is just secondary…….The only costs that get cut are in medical care.

  7. bcg, please read the letter, slowly, then get back to me.

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