But..but...Obama promised we could keep our health insurance if we like our health insurance...
The truth is Democrats planned to destroy the private health insurance market all along. The set a bomb in Obamacare.
That would be the provision of the law, called the medical loss ratio, that requires health insurance companies to spend 80% of the consumers’ premium dollars they collect—85% for large group insurers—on actual medical care rather than overhead, marketing expenses and profit. Failure on the part of insurers to meet this requirement will result in the insurers having to send their customers a rebate check representing the amount in which they underspend on actual medical care.
This is the true ‘bomb’ contained in Obamacare and the one item that will have more impact on the future of how medical care is paid for in this country than anything we’ve seen in quite some time. Indeed, it is this aspect of the law that represents the true ‘death panel’ found in Obamacare—but not one that is going to lead to the death of American consumers. Rather, the medical loss ratio will, ultimately, lead to the death of large parts of the private, for-profit health insurance industry.
REP. PETER ROSKAM: How about when the president said you can keep your health care coverage if you like it? And yet, the reality is, according to Bloomberg at least, 9 percent fewer businesses are offering medical coverage than in 2010. There, the rhetoric didn’t meet the reality, did it?
SEC. KATHLEEN SEBELIUS: Well again, Congressman, what you’re seeing – it wouldn’t have mattered if we had passed the Affordable Care Act or not. The private market is in a death spiral.