Saturday, January 1, 2011

Some New Health-Care Rules to Take Effect

The new rules go into effect on Saturday.

These provisions were not affected by a Dec. 13 federal court ruling in Virginia that declared another piece of the new health-care law - the requirement that all Americans buy health insurance - unconstitutional.

In an indication of incredible arrogance and a belief that planners know better than the markets a proision that limits what health insurers can do with the money their customers send in as premiums takes effect.

The rule requires that insurers spend at least 80 percent of premium money on the customers themselves. The companies must either spend this money to pay insurance claims or use it for activities that improve customers' health.

This will, of course, put greater burdens on smaller insurers who may not have the economies of scale to be able to meet this requirement.

Insurance companies overall say this could cause them to cut back on the services they offer, or even pull out of states where administrative costs are higher.

The creation of a new Center for Medicare and Medicaid Innovation goes into effect. It is supposed to foster innovation in both caring for patients and processing their payments and claims.

Since the free market would do this, the arrogance again amazes. This is some politically charged center of which it is down right scary to contemplate what they will really be up to.


  1. 2nd paragraph:

    "...that planners no better than..."

    You mean "know," right?

  2. Actually, it's in the 3rd paragrapgh, but I got it. Thanks.