The Bomb Buried In Obamacare Explodes Today
(The “bomb”) is the provision of the Affordable Care Act, 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.
// Important to be aware of this regulation and its enforcement should take effect in 2014…
// Perhaps new insurers that are more lean will evolve and those with higher overhead expenses dissolve. Regardless, this is definitely noteworthy!
(via Forbes)
