Health insurance companies across America are being forced out of business by edicts of ObamaCare, leaving millions of families without protection.
Remember Obama’s fulsome promise: “If you like your health care plan you will be able to keep your health care plan. Period. No one will take it away. No matter what!” This was Obama’s sacred pledge before ObamaCare was jammed through Congress in what was likely the most audacious and costly action of his deceptive Presidency.
He gave his word to the American people, as recounted in a December paper by Grace-Marie Turner, President of the Galen Institute, on the radical restructuring of our nation’s health system.
The Galen Institute is a health research organization.
A survey of 1,300 employers put the white House in a state of “apoplexy” when it was published last June because the detailed survey showed so many companies planned to drop health insurance if key portions of ObamaCare take effect in 2014.
The White House tried to discredit the survey results, which found that more than 50 percent of those in companies aware of the law will stop offering health insurance. That could mean as many as 78 million workers and their families would no longer get insurance they now get at work. The survey indicated that, if driven into government subsidized insurance (state health exchanges), it could pile $1 trillion more dollars onto the cost of ObamaCare.
The losses in coverage have begun already. Many are losing protection because insurers are dropping out of markets in some states. Some carriers are leaving because of the burdensome rules. In Indiana, 10 percent of the health insurance firms have pulled out of the market because they are “unable to comply with the federal medical loss requirement (MLR),” writes Turner.
The medical loss ratio is an overly large percentage of an insurance premium that’s dictated by the government, which an insurance company has to spend on services to the insured, often leaving little for administrative costs and profit.
“Indiana was hoping to bring the companies back by asking the Department of Health and Human Services (HEW) for a waiver from the rule; but Washington refused in late November to grant the waiver.
Indiana Governor Mitch Daniels responded: “Once again the Obama Administration took a position in favor of higher health care costs and against personal freedom.” The MLR regulation is especially hard to meet for Health Savings Accounts, which offer high-deductible coverage. Indiana has a “high percentage of these popular, cost-saving plans,” Turned points out.
The Principal Financial Group, headquartered in Iowa, announced it would cease to sell health insurance. This affects 840,000 people who get their insurance through employers served by the company.
Another 42,000 employees of small and median-size companies found out in January they would lose their health coverage with Guardian Life Insurance Company. Cigna said in its annual report it is no longer offering insurance coverage to small businesses in 16 states.
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