Obama wants to destroy $100 billion/yr in tax revenue and put

[healthmyths]

400,000 people out of work!

From August 1997 to August 2007, employment in the health insurance industry grew an astounding 52%, from 293,000 to 444,000
Health insurance industry employment outpacing providers and all-industry growth rates | Economic Policy Institute

Obama has said ""I happen to be a proponent of a single payer universal health care program"

So what happens to the 1,300 insurance companies that pay over $100 billion a year in Federal, in states, and in local taxes including property
taxes on their offices,equipment,etc. plus these companies employ 400,000 people.

SO has that COST been calculated by the CBO in their latest ACA cost estimations?

NO!
YET Obama WANTS to destroy $100 billion a year in tax revenue AND that cost was never included in CBO projections!
has the 400,000 jobs unemployment benefits been calculated in the cost.

 

[healthmyths]

WELL?

If Obama prefers a single payer system.. then

--- what happens to the 1,300 health insurance companies?
--- Where will the Federal/state/local taxing entities get $100 billion a year if these companies go out of business?
--- If it is a single payer that 1,300 companies will let go 400,000 employees.. all of who will be eligible for
-- at least $300/week for 99 weeks or another $11.8 billion that has to be paid out.
-- Plus these 1,300 companies won't be paying Federal Unemployment Tax.
-- Plus local suppliers, paper, computer systems, office furniture,etc. they will be losing revenue.

All in all has anyone really thought of the consequences when these 1,300 companies no longer exist because
Obama doesn't like the existence of 1,300 health insurance companies but prefers JUST ONE???

Anyone other then me thought about these ramifications???

 

[healthmyths]

Of course NONE of you have any equity holdings in health insurance companies that will be going out of business.
Right now the market value of health insurance companies is over $138.5 Billion..
Will Obamacare be Profitable? 5 Undervalued Healthcare Stocks | Kapitall Wire

What will be the value when these and the other health insurance companies aren't able to charge enough premiums to stay in business due to ACA?
For example.. ACA requires 85% of all premiums be paid out in benefits.
Sounds compassionate. Sounds like ACA protecting people while putting screws to health companies.
The facts the idiots that put ACA together knew OR IGNORED is this:

The average health insurance company spends 80¢ of every 1 dollar in claims..(primarily because $850 billion is wastefully spent in "defensive medicine" from fear of lawsuits!
The average health insurance NET profits is about 4.5%
This means one of two results.
Result one
If the companies are required by state laws to have reserves to pay future claims and the 4.5% generates those profits that generate reserves where will the
profits come from? With 85 cents gone leaves 15 cents which leaves 11.5% for salaries,computers,etc. and NOTHING for profits.. Companies can't meet the
state laws and therefore not able to sell insurance. Go out of business.

Result two.
If the profits are to be maintained to stay in business this means salaries, cut i.e. people cut. Because with 15 cents left, 4.5¢ for profits that means operating costs 7¢ left.

 

[healthmyths]

Evidently the concept that health insurance companies must make a profit is unknown to most people on this board at least.
Profits create reserves.
Reserves are needed to pay future claims.
If an insurance company can't make a profit and therefore have reserves the state won't let them sell insurance. That simple.
Before ACA the average ins. company paid out 80¢ of every dollar.
Before ACA the average ins. company had 4.5¢ in profits before taxes with which to build state required reserves.
That left before ACA 15.5¢ of each dollar for salaries, computers,office rent/utilities,supplies,etc.

But under ACA ins.companies must pay out at least 85¢ of every dollar in premium.
if the average ins. company has a net profit before taxes of 4.5¢ or a total of 89.5¢ that leaves 10.5¢ cents instead of 15.5¢ for
salaries, computers,office rent,etc...

Something must go.
NOW the truly ignorant say "YEA well those high priced executives need to take a pay cut .. they are making millions"!

Let's take a look and see what a high priced executive actually takes from every $1 in premium!

The bulk of Aetna's CEO Mark T. Bertolini's pay last year was $34.23 million in value from stocks vested and options exercised in 2012.
He also received a $977,159 salary, $892,800 in non-equity incentives and $256,971 in "other compensation."
This does not include an increase of $33,584 in his pension value.
Aetna CEO's Pay More Than Tripled Last Year - Hartford Courant

IDIOTS!!! His "$34.23 million IS NOT an operating EXPENSE... I.e. it is NOT part of the 15.5¢ of salaries,etc.!!!
His Salary of almost $1 million IS!

Aetna end of 2013 BEFORE ACA
Net Premiums Earned of $46,387,100,000
Benefits,adjustments, $35,246,400,000 which is 75.4% of Premiums paid out in CLAIMS
Selling / General /
Administrative Expense $ 8,645,400,000 18.6%
Net Income Before Taxes $ 2,940,500,000 or 6.3%

Aetna | Investor Relations | Financial Fundamentals - Annual Income Statement

Assuming Mr. Bertolini's $1 million salary comes from the selling/general/administrative of $8.6 billion that equals:1/10th of 1%!!!

NOW with ACA in place Here is what Aetna's financials will look like WITH the 85% must be paid law!

Aetna end of 2013 AFTER ACA..
Net Premiums Earned of $46,387,100,000
Benefits,adjustments, $39,428,950,000 which is 85% of Premiums paid out in CLAIMS per ACA law!
This leaves $6.9 billion!
Something will have to be gone in order for Aetna to make a profit and to have reserves for future claims!
Using the same percentage for selling/general/administrative of 18.6% that means $1.29 billion versus $8.645 billion before..
A CUT in selling/general etc. of over $7.35 billion!

Cuts in employee numbers, office supplies computers,etc. SLOW of the economy!!!!

That leaves less profit to build reserves, etc. and that means reduction in the sale of insurance premiums!

And this is Aetna! There are 1,300 companies albeit smaller that will have to meet the same 85% ACA requirement!

Do you people understand the implications of this???