I have written here that I thought that the "public option" was largely besides the point. Politico has this:
Love how the rhetoric [h]as been that insurers have won.
The last time I checked we didn't get an 80 billion "deal" in exchange for removing our biggest legislative issue.
In fact, while the govt run plan has been removed which is a win for taxpayers and for health plans, the fact is this bill is far from a "give away" to insurers. For instance:
1) The premium tax is now 10 billion more and will adversely impact people who are buying plans. As cbo has said this tax will be passed on but guess who will get blamed — health plans. Further it is not tax deductible meaning that some plans could have an effective tax rate above 100 percent.
2) Mandatory [medical loss ratio] — this is going to kill health insurers selling insurance in the individual market. By setting this standard and implementing it so quickly these plans will essentially be forced into jacking rates up or going out of business. And frankly this will undermine a lot of the good things that health plans do — disease management, care coordination and anti-fraud detection (which I imagine with taxpayer subsidies going to health plans is something the govt will want plans to focus on).
3) Other issues — there are a whole host of other new regs that will go into effect almost immediately making it virtually certain that existing contracts will have to be opened up and rates revisited.
4) Mandate — while the mandate has gotten a little stronger, it still won't be enough to materially effect the insurance take up rate thus causing everyone's rates to go up.
Democrats have been smart to set up many of these issues so that health plans take the fall for the disruption and costs increases that will occur.
Frankly while the media is focused on the govt run plan as a "win" for the industry this misses a whole host of other issues that directly increase regulations on insurers and make it harder to serve the individuals, families and employers who rely on insurers for coverage.
The view of the health care bill from the insurance industry
4/
5
Oleh
abudzar
