Quote:
Originally Posted by Riot
Or, insurance companies are not forced to expand coverage, as much as the bill will hand them 30 million new people that have to buy insurance from them and will pay them for it.
There is a provision in the PPACA that insurance companies in the future will have to spend 80% of their income on clients (not profits) so they are simply trying to price gouge as much as they can, now, before they are prohibited from doing it any more.
It's pretty funny, because this bill has been accused, by the left, of being better for the insurance companies than people.
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from fact check dot org:
Most of the new law has yet to go into effect — and it won’t until 2014 — but some provisions affecting insurers were instituted this fall. So far, insurers can’t deny coverage to kids because of preexisting conditions, and they must allow dependents to stay on their parents’ insurance until age 26. They also must provide free preventive care and eliminate lifetime and certain annual monetary caps on coverage.
free. lovely word, isn't it? only someone is paying for it.
all too true that most of the increases yearly are due to rising medical costs overall, but it's also true that there is an estimated 4% increase due to the new law.
besides, lifetime caps being removed as well as removing rules regarding pre-existing conditions will cause rising costs to insurance companies, who will pass that on to their customers. does anyone really think that these companies will accept a lower bottom line, that they'll choose to absorb these costs? yeah, right.