The 85-15 Rule To Destroy
Private Health Insurance
"...a plan that provides health insurance coverage offered by a health insurance issuer, that has a medical loss ratio of at least 85 percent."*

"...such organization’s percentage of total premium revenue expended on reimbursement for clinical services provided to enrollees under its policies during such taxable year (as reported under section 2718 of the Public Health Service Act) is not less than 85 percent.’’*

ObamaCare forces health insurers to spend 85% of premium revenues on "reimbursement for clinical services". That means they only can use 15% for administration, overhead, reserves and wages. This is an impossible ratio to operate under and has been set so as to destroy private health insurance.

The results:
  • Insurance rates will by mandate skyrocket on January 1, 2011.
  • The private health insurance companies will start shutting down and eventually do so in 2 or 3 years.
  • The process will be a total mess with gigantic gaps in medical coverage and services.
  • The Federal government will claim the mess is because of "greedy health insurance companies".
  • More to come...
You can read the details below.
*Ordered to be printed as passed
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