Something I have been saying all along was just repeated on Countdown by former health insurance executive Wendell Potter – there is nothing to stop insurance companies from raising rates.
The bill backers have been touting out charts and tables derived from the CBO report to highlight savings with the new reform. One thing they either don’t realize or don’t want to convey is that the CBO numbers are purely an estimate. A key variable in there will be the insurance companies “playing by the rules”.
As an example we have the 85% medical loss ratio, which states that 85% of premiums must go towards health care. Well administrative costs are considered health care, and there’s a lot of ways for the insurance companies to play with the numbers to get a higher number that what it should be.
And anyone who believes that the insurance companies will play by the rules and not try to figure out loopholes like this is sadly mistaken. I guarantee they already have lawyers and accountants figuring out exactly what they will be able to squeeze past the system, and the fact that enforcing the medical loss ratio will be an entirely new system for the government, we can expect such loopholes and backdoors to be very easy to get in right now.
But I am sure we will “fix it later” because somehow the Democrats are going to magically have a more solid majority than they do now when these problems really start to show their ugly little heads. Meanwhile we will all be forced, by law, to fork over our money to this system.
Seriously – if that is progressive then I am sorry I ever called myself one.