Saturday, October 9, 2010

Insurance reform

Some large companies like McDonald's threatened to drop health insurance entirely or double rates in order to avoid the modest increase in life time coverage limits to take effect this year. The cap will increase each year until 2014 when it is eliminated. To avoid an embarrassment right before the election the Obama Administration has granted them a one year wavier.

The waiver affects about a million workers, the rest probably already have limits that are higher than this year's standard. These companies have said they will request a waiver every year through 2014 when the limit is completely lifted. After that it won't do them any good to make threats as there will regulations to provide affordable coverage including requirements that most of the premium must actually be spent on healthcare.
The insurance companies will still be allowed gouge huge profits but it's a start.


Anonymous said...

Has there been an attempt at a pre-election waivers for the situation described below?

Headline: "Health insurers drop coverage for children ahead of new rules"

John Puma

SanMigMike said...

I know that the health insurance industry is pouring big bucks into the Republican coffers but anytime I think that the health reform was not worth the paper it was written on much less the paper that was wasted discussing it. I think back to right after it was passed the health insurance industry stocks went UP. The fact that they went up means to me that the bill was s---. A waste of time and paper. Of course the industry will fight it since they want no regulations, no limit on what they can do to their victims, no limit on how they can rip us off.

With the growing cost of health care and the growing cut that the insurance industry takes pretty soon we will be paying our health insurance and it will be great...until we need it. "Sorry, you are insured only as long as you NEVER make a claim so we can keep 100% of the money we get!" Think of how upset they were when California wanted to set a limit on their overhead. I mean 35% going to them for NO added value. I can see the banks sharpening their pencils, what a business...why can't we charge for a savings account?