So Kathleen Sebelius says they are collecting the information on insurance cos for the 80/20

[lonestarnot]

and that we will get checks back if insurance cos are not spending their 80 cents collected from every dollar on health care. She swears they have the authority/teeth by law to enforce. I don't know what to think about it yet. I guess when I get a check I will be happy. I hate insurance companies!

[Tx4obama]

1. Yes, the new law went into effect at the beginning of January 2012

SNIP

A rule that could be popular with customers but not so with insurance companies is one that requires insurers to spend at least 80 percent (85 percent for large group plans) of premium dollars on patient care or quality health measures, rather than on the company's administrative costs. If an insurer spends less than the required percentage on quality and care, the consumer will receive a rebate ....

SNIP

http://www.usnews.com/news/articles/2011/01/03/new-healthcare-reform-provisions-go-into-effect

p.s. I know that 'some' folks have been griping that Obama's reforms did not go far enough, but I think that in the long run we will see that his reforms will be a HUGE change from what there was a year ago

[lonestarnot]

2. Well the more they raise premiums the more we get back unless they spend it on health care. I think

they should have to pay interest at 20%

[zipplewrath]

7. For various values of "huge"

The vast majority of americans will see no change at all. My costs have gone up, not down. The White House predicts the cost of CARE will continue to rise at 7% per year.

But I'll wait with bated breath for my rebate check.

[ellisonz]

3. What if Barack Obama capped health insurance company profits...

...and no one at DU noticed, did he still cap health insurance company profits?

[zipplewrath]

6. He didn't

He capped their profit margins. They can still generate just as much profit as they can, as long as it is only 15% of their total expenditures. So they have little incentive to keep health care costs down, and little to control premiums.

[ellisonz]

8. 15% sounds like a cap to me...

...that's better than them taking 30% off the top, no?

[zipplewrath]

10. A cap on margin

not on profits. You do understand the difference right? Not to mention how that difference is significant in the way it could affect your health CARE costs?

[ellisonz]

11. Yes.

But that's still a cap - on percent margins. A cap on the dollar profits would likely produce an even more dramatic backlash from the health insurance industry.

I think we can all agree that what Obama has done is better than what we have had before. I could go into great detail on this but that would probably degenerate into the "well he could have gotten single-payer if he had asked for it" type counter-factual argument.

[lonestarnot]

12. Genius!

[eridani]

4. Given that they get their data from insurance companies--

--expect a lot of bullshit reclassification of administrative nonsense as "care." Regulation by mandated MLR has abjectly failed in 15 states. Why does anyone think it will work now?

[elehhhhna]

9. the ins. cos just lost a suit to classify sales comissions as "care". lolololol nice try.

[eridani]

13. You think that's the only trick they have?

Glad that you think that the utter failure of states to regulate costs through MLR is so funny. The dead and bankrupt sure don't.

[madrchsod]

5. so do i and that`s why i love medicare!

i went to the hospital er the other day in a distant city...insurance? ...no medicare..card?... ?...oh, i can look up your ss number.

two weeks i`ll have 0 co-pay.