This figures: Senate Republicans and two DINOs have introduced a bill to take away money that was designated to go to consumers as part of the Affordable Care Act, in the 80 / 20 ratio:
As part of the Affordable Care Act, health insurers must spend at least 80% of the money they earn from premiums on actually providing health care, with the remaining cash used to cover all administrative, advertising and payroll costs. Those insurers with plans that don’t follow this ratio are soon supposed to start giving the extra money back in refunds and discounts. But new legislation introduced in the Senate this week could jeopardize this, while giving insurance companies even more money to stick in their dog pillows.
The bill, introduced by Senator Mary Landrieu (DINO) of Louisiana and co-sponsored by John Isakson (R) of Georgia, Lisa Murkowski (R) of Alaska and Nebraska’s Ben Nelson (DINO), is intended “to preserve consumer and employer access to licensed independent insurance producers“ by eliminating insurance broker commissions from the administrative overhead.
Does that “intent” sound like bullshit to you? Does to me. Broker commissions not coming out of insurance companies’ overhead helps WHO exactly? That’s right. It helps insurance companies and those who receive commissions.
So under the current rules, an insurer that takes in $100 million dollars in premiums must spend $80 million on paying for health care and those broker commissions are included in the remaining $20 million.
But if this bill becomes law, those commissions — let’s just put a number of $3 million on them for this example — would no longer be part of the equation. That would mean the insurer would only have to spend $77.6 million on health care but would now have $22.4 million to use for its own purposes.
The National Association of Insurance found that altering the rule to remove broker compensation will result in a loss of more than 60% of forthcoming rebates for consumers.
Conservatives in Congress like Landrieu, Isakson, Murkowski, and Nelson just can’t stop themselves from fighting for the best interests of the corporations and the one percent.
And, by the way, this is part of Obamacare, part of health care reform, so would all the Republican base voters who hate, hate, hate Obama and the Democratic Party, and pay for health insurance, please explain how this new conservative
trick bill will work out better for them personally? I’d like to hear that argument.