Doesn’t Obamacare force them to give refunds to customers if they spend less than 80% on health care costs? Seems like their only incentive is to make a 20% profit. They certainly don’t have any incentives to overcharge customers under Obamacare since they have to send that money back after that point.
Seriously, I never said anything about over charging, so I don't really know why you asked me that.
They wanted the young and healthy to help offset the costs of the sick people. I myself, thought that when the government took over the sickest segment (people over age 65) that the Insurance companies got more than enough help to allow them to provide a competitive product and still make a decent profit.
However, then the government decided that health care was cosing too much, so they decided they would just pay what they wanted to the Docs. So the Docs had to recover their costs from the private sector. So health care costs skyrocketed. It's a vicious cycle.
Just goes to prove the scariness of those famous words: I'm from the government and I am here to help.
Regarding the return of “overcharges”: Was it 80 or 85%? Either way a 15 - 20% profit margin is a darn good margin.
So they hedge their bets, and make sure that their pricing gives them the max profit allowed, and redefine health care “costs” if they need to.
And they get protection from downside risks via the ACA. So like I said, they have no incentive to do anything, other than whatever the heck they want. They have arranged to be in the cat bird seat so to speak.
It would be really nice, if they would just let Obama and his ilk twist in the wind. One the other hand, I really would like to see people who are getting insurance canceled and prices raised so much have some recourse. It's criminal really what's happening to them.
Can you imagine having a spouse or child with cancer or some other severe illness and not being able to continue your insurance coverage because of this government caused debacle? And to add insult to injury, you have to pay a penalty? These socialists will pay for this. In this life or the next.