Obamacare: Now We’re Finding Out What’s In it
Nancy Pelosi’s now famous words are coming to haunt Americans as insurance companies drop policies for children and raise rates to make up for all the mandates Obamacare calls for. The Post has listed a few federal requirements that go into effect this Thursday:
The health care reform act goes into full effect in 2014, but some rules aimed at helping consumers (emphasis mine) take effect Thursday. Here’s a list of this fall’s changes, according to the Colorado Consumer Health Initiative:
•Eliminating lifetime limits on how much insurers will pay to cover claims in a policy.
•No more dropping of individuals, or “recision,” when an expensive illness results in big claims.
•No co-pays or other cost-sharing for preventive care, such as immunization or mammograms.
•Right to include children up to age 26 on family policies, whether they are dependent or not.
•No more refusal of policies to children with pre-existing conditions.
They must have a very different meaning of ‘help’ than I do as these requirements only increase the cost burden onto insurance companies which in turn will have to raise rates to cover these costs. It doesn’t take an economic degree to understand why this will increase the costs and decrease the coverage opportunities of the average health consumer. Notwithstanding the basic laws of economics, some regulators are still confused by these rate hikes calling them bizarre.
Health-insurance companies are raising rates in Colorado, ending sales of child-only policies and blaming their actions in part on the federal health reform law, moves that regulators call “bizarre” and consumer advocates are vowing to watch.
Yes, how bizarre that a private insurance company, who has to make a profit to stay in business, ask for a rate increase when they are being forced to cover more people and people with pre-existing conditions, not being able to charge certain co-pays, eliminating lifetime limits, and will not be allowed to drop coverage for any existing individuals.
What’s truly bizarre is that politicians can manage to pass this health care bill without reading or knowing what’s in it and think that they can centrally manage the entire health care industry without consequences. What we are seeing is just the beginning of less health care choices and increased costs for everyone; exactly the opposite of what Obamacare intended, but exactly what liberty-minded writers predicted. On average, health insurance companies only have a 2-5 percent profit margin. You can’t ask them to increase services and costs without expecting the insurance companies to shift that cost burden onto the ratepayers.