The Red Next Door
26th March 2010, 20:48
Both state and federal regulation has required insurance companies keep a 65-45 percentage arrangement: 65 in claims payment and 45 for administration and claims expense. Withholding that the insurance companies store for a major catastrophe. They are also required to keep a certain amount of cash on hand as a percentage of their exposure to pay claims. So, for example, if you have a disaster and you suddenly had 400,000 claims come in, you've gotta have the money to be able to pay those claims immediately. If insurance companies wanted to have 85% set aside for claims, they couldn't because of state and federal laws it would be illegal, they had to go at 65%. So if an insurance company falls outside of those guidelines, they are considered financially unstable.
Insurance companies are audited by the state insurance departments to make sure they fall within the ratio. There are some plans that are audited both state and federally, and then you have your private auditors who will come in as part of the stock market. So insurance companies are audited often. How often do these audits take place? At least once a year, you'll have one from the industry auditors, and every three to five perhaps for federal and state.
So what Obama just did is make every insurance company in the country financially unstable. Remember, the 15% that insurance companies are left has not only to pay salaries, maintenance, upkeep of buildings; it also has to pay the 40% increased taxes that they've got. The provision in the Senate bill requires that all insurance companies pay 85% of premiums collected every year in claims, so the 65% is now 85%. It doesn't matter how much insurance companies increase the premiums, it won't work.
Most people won't see the dramatic premium increases until January 1st, 2011. So what Democrats are going to do is all these people who voted for this, and those who likely were swayed by this argument, are going to run around and say, "Well, look, nothing happened. You're not paying any more. You know, everything's fine. It was just a bunch of 'fearmongering'".
Health insurance companies in the country now have about two to three years to stay in business under Obama, because of the 85-15% ratio. Plus the additional expenses they're going to incur. Additionally, the mandates, what people don't understand when CMS (which is the Centers for Medicaid and Medicare) push a mandate down on insurance companies, they have to pay to complement those mandates. The insurance companies don't know how many of those are in this monstrosity. So they can have their mandate budget doubled, their taxes already up 40%, and their cash flow immediately cut. These are ridiculous dictates made by people that have no clue how the insurance business, or any business, works. The whole purpose of all these new requirements on insurance companies is to put them out of business so that people will be forced to move to a single payer system that Obama clearly stated that he wanted before he was elected.
Come January 1st you're going to see 200 to 300% increases in premiums and people are going to drop their coverage. So you've got the woman who isn't going to go get the mammogram or the man who's not going to get the prostate exam, and they will die. People will die when they drop the coverage because they can't afford three times the premium. Remember, the premiums are going up because of the government, and jobs are being lost because of the government. If you can't pay it, you can't pay it. So people are going to drop it. They're going to drop their insurance before they drop their mortgage. They're going to be clamoring to the government to fix the mean-spirited insurance companies for raising the prices so high and that's where Obama's going to step in and say, "You know what? We have no choice here but than to do it ourselves," and then insurance companies get dumped on again first and foremost with Obama portraying the government as the savior. Don't believe me? Here is an example from The Politico: "Timing Right for Democrats' Midterm Election Hopes -- Voters will get their first taste of the benefits of health care reform only a few short weeks before the November midterm elections. They won’t have to swallow most of the bitter pills until much later -- well after President Barack Obama faces voters again in 2012. Match the effective dates of key reform provisions against the election calendar, and it becomes clear that Democrats were as focused on writing a legislative overhaul of the health care system as they were on devising a political road map for selling it to voters." This story is celebrating the brilliance of the Democrats. Basically this story is; "Americans you got screwed, but you're not going to know it in time to vote the Democrats out." And it's a shame because all of this was predictable based on the details of the legislation.
So you may ask "Why aren't the insurance companies not taking out full-page ads detailing all of these deceptive lies to the American people? Why are Wall Street companies not doing the same? Why are they continuing to allow these liberals to demonize them and not fight back?" Insurance company stocks right now are skyrocketing and so are drug company stocks because the original few years of this bill mandates 32 million more customers, and the insurance companies are going to pay for them somehow, some way, so they're excited about this. You jump in on the bubble and you cash out. I mean, even if you think you got five years left in business, maximize it all you can and then get the hell out if you don't think you can stop it. We will see in the very near future how this all pans out ....
Insurance companies are audited by the state insurance departments to make sure they fall within the ratio. There are some plans that are audited both state and federally, and then you have your private auditors who will come in as part of the stock market. So insurance companies are audited often. How often do these audits take place? At least once a year, you'll have one from the industry auditors, and every three to five perhaps for federal and state.
So what Obama just did is make every insurance company in the country financially unstable. Remember, the 15% that insurance companies are left has not only to pay salaries, maintenance, upkeep of buildings; it also has to pay the 40% increased taxes that they've got. The provision in the Senate bill requires that all insurance companies pay 85% of premiums collected every year in claims, so the 65% is now 85%. It doesn't matter how much insurance companies increase the premiums, it won't work.
Most people won't see the dramatic premium increases until January 1st, 2011. So what Democrats are going to do is all these people who voted for this, and those who likely were swayed by this argument, are going to run around and say, "Well, look, nothing happened. You're not paying any more. You know, everything's fine. It was just a bunch of 'fearmongering'".
Health insurance companies in the country now have about two to three years to stay in business under Obama, because of the 85-15% ratio. Plus the additional expenses they're going to incur. Additionally, the mandates, what people don't understand when CMS (which is the Centers for Medicaid and Medicare) push a mandate down on insurance companies, they have to pay to complement those mandates. The insurance companies don't know how many of those are in this monstrosity. So they can have their mandate budget doubled, their taxes already up 40%, and their cash flow immediately cut. These are ridiculous dictates made by people that have no clue how the insurance business, or any business, works. The whole purpose of all these new requirements on insurance companies is to put them out of business so that people will be forced to move to a single payer system that Obama clearly stated that he wanted before he was elected.
Come January 1st you're going to see 200 to 300% increases in premiums and people are going to drop their coverage. So you've got the woman who isn't going to go get the mammogram or the man who's not going to get the prostate exam, and they will die. People will die when they drop the coverage because they can't afford three times the premium. Remember, the premiums are going up because of the government, and jobs are being lost because of the government. If you can't pay it, you can't pay it. So people are going to drop it. They're going to drop their insurance before they drop their mortgage. They're going to be clamoring to the government to fix the mean-spirited insurance companies for raising the prices so high and that's where Obama's going to step in and say, "You know what? We have no choice here but than to do it ourselves," and then insurance companies get dumped on again first and foremost with Obama portraying the government as the savior. Don't believe me? Here is an example from The Politico: "Timing Right for Democrats' Midterm Election Hopes -- Voters will get their first taste of the benefits of health care reform only a few short weeks before the November midterm elections. They won’t have to swallow most of the bitter pills until much later -- well after President Barack Obama faces voters again in 2012. Match the effective dates of key reform provisions against the election calendar, and it becomes clear that Democrats were as focused on writing a legislative overhaul of the health care system as they were on devising a political road map for selling it to voters." This story is celebrating the brilliance of the Democrats. Basically this story is; "Americans you got screwed, but you're not going to know it in time to vote the Democrats out." And it's a shame because all of this was predictable based on the details of the legislation.
So you may ask "Why aren't the insurance companies not taking out full-page ads detailing all of these deceptive lies to the American people? Why are Wall Street companies not doing the same? Why are they continuing to allow these liberals to demonize them and not fight back?" Insurance company stocks right now are skyrocketing and so are drug company stocks because the original few years of this bill mandates 32 million more customers, and the insurance companies are going to pay for them somehow, some way, so they're excited about this. You jump in on the bubble and you cash out. I mean, even if you think you got five years left in business, maximize it all you can and then get the hell out if you don't think you can stop it. We will see in the very near future how this all pans out ....