This article is based on two articles, one by Guy Benson at Townhall.com and one at the Weekly Standard Blog. At Townhall, Guy Benson reports on a regulation in Obamacare that allows the Health and Human Services department to mandate insurance companies to spend at least 80 cents of the premium dollar on medical care and quality. For employer plans covering more than 50 people, the requirement is 85 cents. Insurers that fall short of the mark will have to issue their customers a rebate. I wonder if the 80 cents includes customer service representatives. Can you imagine the disaster that will occur as a result of this law if customer service is not included in the 80 cents? When did the government discover the right to tell private corporations how they can spend their money?
The article at Townhall further explains:
“This is incredible. By its own actuary’s admission, the federal government’s new healthcare overhaul fails to curb spiraling costs — which was a prime raison detre for the new legislation in the first place. Not satisfied with missing the mark on Obamacare, and racking up tens of trillions in unfunded government-run healthcare liabilities, the federal government is now insisting that private insurers accede to its
proven incompetenceinfinite wisdom on cost-reduction — under penalty of law.”
Meanwhile, the Weekly Standard Blog reports
“The Congressional Budget Office projects that Medicare Advantage funding would be cut by more than a quarter of a trillion dollars ($254 billion) in Obamacare’s real first decade (2014 to 2023), which amounts to cuts of about $25,000 for each of the roughly 10 million Medicare Advantage beneficiaries. Those cuts wouldn’t be made if Obamacare is repealed in January of 2013, but $8 billion will be cut by the end of 2012. These Medicare cuts — both the $8 billion and the $254 billion — wouldn’t be used to make Medicare more solvent over the long haul, but would instead be spent on Obamacare.”
This is no way to run a healthcare program. We need to repeal and replace as soon as possible.