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View Diary: Obamacare is a step in the right direction but not the final destination (31 comments)

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  •  I remember your diary (4+ / 0-)
    Recommended by:
    marina, 4Freedom, FloridaSNMOM, catilinus

    I hope you are right and the 80/20 rule is enforced.  It is a step in the right direction.  You heard of Hollywood accounting?  Soon we will learn about HMO accounting.

    I also hope that Obama shows some affinity for the idea for Single Payer before 2016.  Perhaps an implied roadmap.

    Daily Kos an oasis of truth. Truth that leads to action.

    by Shockwave on Tue Jun 18, 2013 at 09:15:19 AM PDT

    •  The thing (1+ / 0-)
      Recommended by:
      Shockwave

      about  insurers trying to play around with loss expenses is that it comes into play on their tax returns.

      Deductible losses on a insurers tax return are not loss provisions,but actual losses.
      Tax return losses are subject to audit by the IRS.
      So, if insurers try to pad their loss expenses to warrant higher premiums, the IRS will catch up to them when they do their tax returns.

      This is why I believe the teeth of the bill is that 80-85% loss requirement.

      In the example above they cite 33% overhead...that is going to be sliced by at least a third to get to 20%.

      That is big savings to consumers.

      And Coopers Lybrands report out today that Joan highlighted indicated the ACA is reducing healthcare inflation which at 3.9% in 2011 is at its lowest since they started measuring it 50 years ago. Coopers attributed it to ACA.

      •  True. The ACA may be improving some costs (0+ / 0-)

        OTOH, insurance companies hold a lot of cards;

        The Quiet Takeover: Insurers Buying Physicians and Hospitals

        "There is definitely a national landgrab over primary care physicians," says Ted Schwab, partner at the Health and Life Sciences practice of Oliver Wyman, an international management consulting firm. This creates a clash between the insurance industry and hospital industry as both fight to control primary care, the epicenter of care management. "We work with insurance companies all over the country, and every single one of them is discussing this in their board rooms. Some are very aggressive, some have decided not to do it," says Mr. Schwab.
        Insurance companies see the world change and, with bottom lines in mind, they are making some moves.

        They are a formidable adversary.

        Daily Kos an oasis of truth. Truth that leads to action.

        by Shockwave on Tue Jun 18, 2013 at 02:10:22 PM PDT

        [ Parent ]

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