Regardless of who is in the office of the Presidency in the United States, someone or some group will be unhappy with that person’s policies and decisions. The same is true for the Obama administration, and the policies regarding health insurance. Will you lose health insurance under Obama’s plan?
What Does Obama’s Plan Mean for You?
Obama’s plan, which is to be put into effect in January, 2011, essentially requires insurance companies to start spending more on healthcare for their insured customers. It seems like a reasonable request, since your purpose of having insurance is to receive healthcare at an affordable price, but in reality, the goal of the insurance company is to make money – and not to provide care for you.
Under Obama’s plan, the insurance companies will have to start devoting 80% of every dollar collected from customers on care. Currently, insurance companies pay about 40% for care. In other words, for every dollar that you spend with the insurance company, you will only receive forty cents worth of care. Up until now, you’ve been on the losing side of this battle. With Obama’s plan, on the surface it seems like you will win, but you may not.
What Does Obama’s Plan Mean for the Insurance Companies?
Naturally, the insurance companies are bucking against this plan. Experts in the insurance industry claim that many insurance companies will be forced out of business, or be forced to drop health care coverage.
Is this a bad thing? The truth is that the insurance companies have been abusing their customers for decades, and nothing has been done about it. Not even half of what you pay into the insurance companies is reallocated for your health. That’s huge! At least with this plan, those insurance companies that are more interested in lining their own pockets – even at the expense of your health – will mostly be knocked out of the game.
Will the Plan Pass?
There is no telling whether the plan will pass or not. Currently, the Obama Administration is waiting on word from the National Association of Insurance Commissioners concerning the Medical Loss Ratio.
The bill itself has already passed, and the only question remaining is when it will be put into effect. The deadline is supposed to be January, 2011, but insurance companies are begging for a longer transition period, regardless of the fact that they have had eight months to prepare for this.
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