ObamaCare Stifles Competition Among Insurers

 

ObamaCare forbids competition between insurance providers on any basis other than price of the policy – the premium.

Here’s the story.  Let’s say the minimum coverage established by the HHS Secretary (currently Kathleen Sebelius) does not include knee replacements for anyone older than 70.  Insurer A abides by this and does not cover this service.  Insurer B decides to cover knee replacements for old folks, but, as a result, the premium must be $7.50 per month higher than Insurer A’s premium.

Under ObamaCare, if Insurer B tries to explain the price differential by promoting their policy as better for knee replacements than Insurer A’s policy, they can be fined, or banned from the exchange, or go to jail!

What is the purpose of this seemingly unreasonable rule? The original reason given was to reduce overhead in insurance advertising costs and increase percent of revenues spent on payouts, but the real reason is – Uniformity.  Basically, if insurers can’t promote what makes their coverage better than others, this greatly reduces the incentive for any “Insurer B” to offer any features other than those required in the Government minimum plan.  ObamaCare’s goal is that no insurer will volunteer to provide knee replacements to individuals that the Government has determined are not worth this procedure.

Dirty little secret – the folks behind ObamaCare believe that insurance companies have been far too generous in their coverage and need to be reined in to reduce overall expenditures on health care.  They need to adhere to the Government guideline because the Government knows what is best for everyone – no exceptions.

No exceptions, that is for the “99%.” Of course, insurance will still be available for any condition from non-exchange, custom insurance policies -i.e.  those intended and priced for the “1%.”  So the rich will still have good insurance and get specialized care etc.  Aren’t you relieved?

Do you folks know this stuff?  Didn’t anyone tell you about this before this mess got enacted?  Did you just blow off all critics of ObamaCare because you believed the media story arc that criticism of ObamaCare was just hatred directed toward Mr. Obama?

Stick with me, and maybe I can help you to see what we critics see coming … before it’s too late to stop it.

the Sceptic

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