Skip to comments.Want to sell insurance on the Obamacare exchanges? There’s a (3.5%) fee for that.
Posted on 12/10/2012 9:41:37 AM PST by Red SteelEdited on 12/10/2012 9:42:43 AM PST by Admin Moderator. [history]
The Obama administration is proposing a new way to finance the health law’s insurance exchanges: A fee levied on the insurers who sell in the marketplace.
Health and Human Services will operate a health insurance exchange in all states that decline to set up the marketplace themselves. In order to finance the exchange’s operations, new draft regulations released Friday envision health plans paying a “user fee” if they want to sell in that space.
(Excerpt) Read more at washingtonpost.com ...
“We have to pass the bill so that you can find out what’s in it.” Pelosi Communist-Calif.
Just another way to reduce the overall costs of health care. /sarc
Fee levied on insurance companies? No, you damn fools, that is a fee leveled on the insured.
IOW, a tariff will be placed on insurance companies who will then have to fire people because they will not be able to afford it.
On a good note, HHS will need another few thousand IRS agents to watch over this.
D _ _ _! Have to hand it to them, they sure are creative in thinking of all the ways to squeeze money out of us.
And these SOB's charge a 3.5% commission? Who is the gouger now?
The worse part? The dummies who voted for the Moron and Chief will never get to know this and won't get that it is a bad management or one time charge that is higher than Giraffe's B@ll$!
You are absolutely correct. I’ve been pricing health insurance for years and these type of premium taxes are always part of the calculation and passed 100% to the person buying the policy.
So what happens to those insurers who remain outside the exchanges, which are all of them now?
What do they get for this ‘fee’?
They thought you would not notice........../s
I am beginning to think that the MAKERS are truly the dumbest people on earth as we keep doing it (making it that is).
Actually, there does not seem to be any mechanism in the law to allow them to collect this 3.5% fee; the law has an appropriation for the federal version of the exchanges, but it was underfunded because they didn’t think they’d have to set any up.
Obama knows the house won’t pass a bill funding it, and so he’s using what appears to be an extra-legal funding mechanism.
“So what happens to those insurers who remain outside the exchanges, which are all of them now?”
In reality, only those purchasing through exchanges will qualify for federal subsidies, so it seems unlikely any insurers would remain outside exchanges.
Second, this fee is particularly bizarre in light of health insurance industry profits, which average only 6-7% (return on revenue). Thus, the exchange fee is equivalent in magnitude to private health insurers trying to raise their profits by 50%. If they did so, progressives would scream bloody murder, but when government does the same thing, it’s “all good.”
So as long as the subsity is way more than the fee then it is worth it.
The states that let the Feds set it up were not worried about the Subsidies anyway,
ya 3000 page bills often make things more efficient
it would be funny if it wasn’t so sad.
Not once have I read what services one can expect, or how this government plan is somehow better than what's already in place.
Another fee on the insurance companies. Yep, that’ll teach em!
Right after they pass it along to the insured. Then laugh about it.
Our so called government is stuck on retarded.
We live in a nation where "The People" are the government. A simple majority of voters cast a ballot for Obama. In your simple statement, you speak volumes: our people, the citizens of this nation, are retarded.