A Preview of Coming ObamaCare Attractions

[boedicca]

Heh.

A huge fracas is underway in Massachusetts:

Want a preview of ObamaCare in action? Check out the Massachusetts insurance market—which earlier this week entered a state of "market chaos" after Governor Deval Patrick denied a host of health insurance rate increases.

On Tuesday, the state's individual insurance market effectively shut down as insurers refused to comply with the state's rejection of 235 of 274 proposed health insurance rate increases.

The dispute has already put the two sides in court. Insurance companies are now claiming that the rejected rate increases mean they won't be able to operate at a profit, and arguing that no actuary would approve the sort of rates that state insurance regulators say they expect. Actuary sign-off is not only important for fiscal stability—it's a legal requirement in the state.

Is this just insurance company posturing? It's entirely possible. Industries, entirely understandably, are bound to put up a fight when told they can't set their own prices. That means making the toughest claims they think they can get away with. But it's not unbelievable that the combination of rate caps and increased regulatory burdens is imposing what amounts to an impossible strain on private insurers....

Chaos in the Massachusetts Health Care Market - Hit & Run : Reason Magazine


This raises a Very Interesting Issue.

Currently, states regulate insurance - one aspect of which is to ensure that the insurance company has the resources to service claims (i.e., the actuary sign off required in MA). If the price caps drive insurance companies below sound actuarial standards, how will the issue of violating state compliance regulations be handled?

 

[Nonelitist]

Just like with home lending... dems will destroy the companies that provide insurance and then wonder what happened and blame it on GOP.

Then, they will claim that another "fix" is needed.

Dem sheep will and media will fall right in line.

 

[rightwinger]

The dispute has already put the two sides in court. Insurance companies are now claiming that the rejected rate increases mean they won't be able to operate at a profit, and arguing that no actuary would approve the sort of rates that state insurance regulators say they expect. Actuary sign-off is not only important for fiscal stability—it's a legal requirement in the state.

Thanks..

Another example of why we needed to include the public option to keep insurers honest.

At least we can use this as an example next year when we add Public Option back into the healthcare plan

 

[Baruch Menachem]

0bamacare has provisions in it that mandate the insolvency of the insurance companies. at least by the current standards. They can juggle stuff and keep going and argue force majure until claims crunch them.

This was a goal of the Mass plan, it is a goal of 0bama care. It was one of the reasons we were screaming so hard that thing was counterproductive and stupid.


and you call that keeping the companies honest? What about keeping the knaves and scammers in Boston and Washington honest? The insurance companies give value for money. The politicians just steal.

 

[Luissa]

We have pretty much the same sort of health care system in Washington State, I have never heard of us having a problem with insurance companies. Of course a lot of people who get their health care through the state, get it through Group Health Coperative.

 

[boedicca]

With 1,300 insurance companies in the U.S., the odds are that ObamaCare's price controls will cause quite a few of them to violate proper actuarial standards for solvency.