36. Medical Loss Ratio
Today we’re going to discuss Medical Loss Ratios, MLRs. I know, sounds as exciting as a root canal, but you’re gonna wanna hear about this! In Obamacare, the Medical Loss Ratio, or MLR rules say that, for every dollar of premium payment paid into an insurance company, 80-85 cents has to be paid out in direct medical care to the patient. Wow—that sounds great! Let’s make those greedy insurance companies pay! Guess again! The 15-20 cents left over isn’t enough to pay for the insurers overhead AND pay their insurance agents and brokers. Already, the agents that I’ve talked to in Colorado are seeing a 30-50% decrease in their income from commissions! These agents and brokers will be put out of business. Now why would the insurance companies let that happen?? Is it because they’re planning on having the state healthcare exchanges take the place of the insurance agents. Afterall, the exchange is just a glorified insurance brockerage, but it’s PAID FOR BY THE TAXPAYERS. The insurers aren’t stupid! They’re more than happy to let taxpayers handle this expense, while they expect millions of new insurance policies to be purchased, primarily by the taxpayers, with premium subsidies paid for by the taxpayers, due to the individual mandate. So the insurance companies have bought into Obamacare and they’ve sold out their agents.
Now, some states applied for a waiver from the MLR requirement in the law. They had to show that compliance with the MLR in their state would “destabilize the insurance market”. The latest numbers are that 17 states applied for a waiver, but only 7 states were actually granted some form of a waiver. Nevada was one of those states. Hold on…isn’t Nevada where the Democrat leader of the Senate, Harry Reid is from? Didn’t he push this law through? And now his state is granted a waiver while 10 other states weren’t.
Aren’t you tired of hearing about special treatment, secret deals, “making up the rules as we go along” behavior from this administration? How “fair” do you think these people will be when it comes to your pacemaker, diabetes treatment, or cancer therapy? The Democrats preach “fairness”. Well, I think it’s only fair to hold them accountable for their healthcare law—vote them out of Washington. Make them try to find a job out here like the folks who are losing their jobs because of Obamacare.
(Note: This commentary is by Dr. Jill Vecchio.)