…for refunds that they are forced to give.
In yet another cynical election year move, the Department of Health and Human Services has ordered that Obamacare must be explicitly credited for refunds that were required by the law. Fox News reported today that:
“Health-insurance companies must tell customers who get a premium rebate this summer that the check is the result of the Obama administration’s health-care law, according to federal guidelines released Friday.
The move is the latest sign the Obama administration is trying to draw attention to the law’s benefits before the fall elections, even though the law faces an uncertain future. The Supreme Court is expected to decide in June whether its central plank-a mandate that everyone carry insurance-violates the Constitution. Mitt Romney, the presumed Republican presidential nominee, has pledged to wipe out the law if elected.”
“Under the 2010 legislation, insurers that don’t spend a specified amount of revenue on actual medical care — as opposed to administrative costs — must refund the difference to customers. The nonpartisan Kaiser Family Foundation has projected refunds would total about $1.3 billion and go to roughly 16 million people who buy their own policies or get them through an employer.”
The Administration is deciding how private companies are to run their business models. This fits perfectly with Obama’s comment:
“I mean, I do think at a certain point you’ve made enough money.”
Assuming that Obamacare isn’t over turned, I think this is a recipe for disaster that will eventually wind up bankrupting these companies.
I grew up in a family with no health insurance, my dad was self-employed and my mom was a home maker. I remembered that way back when, they bought a policy for me through the school that covered me for emergency and catastrophic care – I did the same in college. When we got sick, we paid cash and kept the insurance for the big things. I never had consistent coverage until I graduated and had my own job. I wondered if there are still companies out there that are still active in this climate, so I looked online for free medical insurance quotes and an out-of-pocket alternatives and found this one. It would seem that companies like this are one alternative without changing the whole insurance industry.
There are still some who still endeavor to persevere.