Obama Administration Issues Rules on Insurance Company Spending

[Geee]

Fox News:

WASHINGTON -- Health insurance premiums should go for actual medical care -- not insurers' overhead and profits -- the Obama administration said Monday in rules that for the first time require the companies to give consumers a rebate.

The regulation unveiled by the Health and Human Services Department calls for insurance companies to spend at least 80 cents of the premium dollar on medical care and quality. For employer plans covering more than 50 people, the requirement is 85 cents. Insurers that fall short of the mark will have to issue their customers a rebate.

Part of the new health care law, the rule is meant to give consumers a better deal. Administration officials said it will prevent insurers from wasting valuable premiums on administration, marketing and executive bonuses. "While some level of overhead costs is certainly necessary, we believe they have gotten out of hand," said Health and Human Services Secretary Kathleen Sebelius.

[Argyle58]

A bunch of people who have never operated a business are telling businesses how to operate. These goals are impossible to meet. Minimum operating expenses like labor, rent, utilities and telephone alone normally exceed the 20% of cost to net income in almost any business. Payroll alone normally hits around the 10% range.

 

The administration should can these rules until they can show that they can operate the government on the same brand of shoestrings that they are expecting private industry to use.

 

An aside on the point of executive bonuses.....The President of the United States recieves a tax free salary of $400,000 per year. This year alone, the president and his family has spent an estimated $6,000,000 in taxpayer dollars on their personal vacations. This does not include personal side trips while on state trips and unnecessary inflating of the cost of these state trips. This represents a bonus structure of 1500% over and above his salary. The president needs to address this issue before castigating private sector executives for their bonuses.

[pollyannaish]

A bunch of people who have never operated a business are telling businesses how to operate. These goals are impossible to meet. Minimum operating expenses like labor, rent, utilities and telephone alone normally exceed the 20% of cost to net income in almost any business. Payroll alone normally hits around the 10% range.

 

The administration should can these rules until they can show that they can operate the government on the same brand of shoestrings that they are expecting private industry to use.

 

 

 

They've got to be kidding! I honestly don't know how they will be able to meet these targets. And I TOTALLY agree that they should have to meet the same guidelines in the government. That would be a riot!

 

Great post!