Nor should you, Bob. There was an insurance employee on the radio yesterday shedding a lot of light on the bill. According to her, the insurance companies will now have to return 85% back in claims of the premiums they collect, up from the 60% currently in use. Out of the remaining 15% comes the salaries, operating expenses, equipment and all other standard expenses. In addition, there will be more taxes sue to the bill tht will also come from that 15%. She doesn't expect insurance companies to survive more than 2-3 years.
As far as premiums, all group policies are contracted every January 1st. When next January comes they will have to raise premiums 200-300 percent to survive. At that time they fully expect another atttack from Obama, like "Look at what those evil insurance companies are doing now. They are trying to rape you!" or something to that effect. Democrats are fortunate that the rates can't be raised until then, as far as the November elections are concerned.
Let's see here, Mike.
Current premium costs are covered with 60% payout. The future costs, which are greater — they say — than the current costs will be covered by 15 percent of the new income. That 15% will certainly be larger than what they're making now, before the 32,000,000 new prisoners get shipped in, wouldn't it? And the rest of their increased costs will be covered by that.
How that sounds to me that their current profits, at 60% plus — lets figure an additional 20% overhead instead of that 15% that they figure will be ruinous for them in the future, leaves them with what sounds like a 20% profit in the here and now, doesn't it?
And weren't these the same folks who were telling you just a few weeks ago that all they made was 2.2% per year?
At exactly what point did you decide that the insurance companies were reliable reporters about their own situation? They made the deal with President Obama, and you might have notice that, although they did put up a fight, it was not as tough a fight as it might have been. Do you really believe that they're telling you the truth now, or do you think that it's just their way of opening up negotiations for the January rate hike sweepstakes?
My money is on the latter.
A 200-300 percent rate hike just to keep their heads above water?
And the camel will only put the very tippy tip of its nose under your tent.
Best get out your camel repellant spray, Mike, and make sure you look all doey-eyed when you urge your fellow Republicans to give till it hurts. The insurance companies appreciate your helpful support.