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.