Word coming down the anecdotal (and now non-anecdotal) grapevine is that Obamacare is a developing nightmare. No one knows how it’s going to work in the long run, or the short run for that matter. There seems to be pain at every level. From the patients who have no idea what they are covered for, what a deductible is etc., to doctors who are increasingly just dropping out and retiring, things are not going well. Billing is more difficult. Compliance is more difficult. Margins are being squeezed. Quality of care is going down. All while liability risk is increasing. A bouillabaisse of dysfunction.
We have long railed against Obamacare as a vehicle of crony capitalism, as a cynical political play, as an unfair burden for small business, but stories like the one attached really put the situation into focus.
Pretty blatant stuff. As a former insurance underwriter (and sometimes agent) I can tell you first hand that brokers and agents loathe competition. Which is understandable. Competition means having to lower prices on a highly commoditized product. That’s not good for commissions.
This is one of the reasons why insurance is such a “highly regulated industry.” It’s not just about looking out for the consumer that’s for sure.
Insurance is a “highly regulated industry.”
I say this as a former insurance underwriter who often looked at statewide filings of other companies and as one who sold insurance in multiple states in college. Insurance is a game of very cozy relationships on the state level.
It’s not that Obamacare is a horribly complicated program which has screwed up healthcare for millions of people, which increased rates rather than decreasing them as promised, which was passed without even 50% of the American people supporting it, which has proven to be a crony capitalist vehicle for the big health insurance companies. No, you don’t like Obamacare because you are ignorant of the program’s genius.
And the drug companies would lose money too as the author of the attached article points out.
We’ve been saying this for 2 years. Now even the people who worked for Obama are admitting that Obamacare is a crony capitalist jack.
The American people, nearly all the American people, don’t want to bail out the health insurers because of Obamacare. They also disapprove of the individual mandate which flies in the face of 200 years of American law.
The Federal Reserve today announced that it is bringing in a former state insurance commissioner, Thomas R. Sullivan, to strengthen and head its insurance regulatory office. This is a good idea. Most insurance regulation is at the state level, but the Fed has a huge impact on insurance, especially through its interest rate setting.