Now it's official.
The New York Times is reporting that insurers are fighting any attempts at regulation.
Frankly we didn't need the New York Times to state the obvious, but this reality is now being reported in the paper of record.
Health insurance companies are lobbying federal and state officials in an effort to ward off strict regulation of premiums and profits under the new health care law.
The effort is, in some ways, a continuation of the battle over health care that consumed Congress last year.
Insurance lobbyists are trying to shape regulations that will define "unreasonable" premium increases and require them to pay rebates to consumers if the companies do not spend enough on patient care.
For their part, consumer groups say they worry that their legislative victories could be undone or undercut by the rules being written by the federal government and the states.
Those of us who fought for a public option, including President Obama who said, a public option was necessary to keep the private insurers honest and increase competition hence keep prices down, knew that this predatory industry would stop at nothing to maintain its steady stream of profits. President Obama was correct. I hope when he is reelected in 2012, he will resume the fight for the public option.
One of the reasons many of us are concerned that the Patient Protection and Affordable Care Act (PPACA), will be harmful for Democrats, is because it's hard to find the "affordable" piece of this legislation. The subsidies are woefully inadequate. Americans are facing higher co-pays, higher deductibles and decreased benefits--this is a guarantee.
Now, everyone take a deep breath and don't shoot the messenger. You didn't think, did you, that insurers were going to allow any meaningful regulation of premiums, did you? They got everything they wanted from the Democrats, you don't think they're going to walk away until they extract toothless regulation, (no pun intended) do you?
More from the New York Times.
Lobbyists are focusing on two provisions whose stated purpose is to ensure that consumers "get value for their dollars."
One provision bars insurers from carrying out an "unreasonable premium increase" unless they first submit justifications to federal and state officials. Congress did not say what is unreasonable, leaving that task to rule-writers.
Another provision, effective Jan. 1, requires that a minimum percentage of premium dollars be spent on true medical costs related to patient care — not retained by insurers as profits or used to cover administrative expenses. Insurers must refund money to consumers if they do not meet the standards, known as minimum loss ratios.
Michael W. Fedyna, vice president and chief actuary of Aetna, underlined the importance of this issue, saying no other aspect of the law would be so "influential in shaping the future of the health care marketplace in the United States."
The definition of medical loss ratio will "determine the willingness of health plans to enter new markets and remain in existing markets," Mr. Fedyna said.
Joshua R. Raskin, who follows the industry as a managing director of Barclays Capital, said, "The definition of medical loss ratios for the purpose of health care reform will be one of the most important events of the year for managed care stocks."
Did someone say, how regulation might impact insurance industry stock prices??!! Oh noez, oh yes.
And let's review the high risk pool which which will receive $ 5 billion from the federal government. Is this sufficient? Well not if you ask Governor Ed Rendell a real good Democrat and big Obama supporter. Now don't go slamming Ed Rendell for just telling the truth. The point being my friends, you can support Obama and at the same time recognize that the PPACA is woefully inadequate and does not go far enough.
Those of us who live in New York State have been advised that we will see exactly zero relief for many long years.
How many New Yorkers will drop their coverage between now and 2014, simply due to sharply escalating premium increases and declining benefits?
With no end in sight to health insurance premium increases in New York's small group market, small businesses will be hit this year with hikes of, on average, 15-20%, according to brokers.
As more small businesses bail out of traditional health insurance plans in favor of cheaper high-deductible plans, costs are rising even faster for the traditional version. Some businesses have reported increases topping 40% a year.
Insurers say costs are rising; any features of the new health reform bill that might help lower costs are still years away from bearing fruit.
Here's how these three small businesses are coping with the turmoil in the market.
We welcome and thank you for your support in fighting insurer atrocities.
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