Unreasonable Health Insurance Rate Increases

Here is what the New York Times says that Old Hillary says about health care:

And Mrs. Clinton, like Bill Clinton when he was president, appears to be more willing to confront insurers and drug makers over high prices. She said she would seek “authority to block or modify unreasonable health insurance rate increases” and stop “excessive profiteering” by drug companies.

docopleratingSounds good, right? However, the logic is quite flawed. For example, how would an insurer remain competitive if it set unreasonable premiums? Remember when Obamacare was all about competition? And by the way, what is unreasonable?

You can block premium increases all you want, sooner or later they must reflect the costs of health care … and recall the law already requires that insurers must spend at least 80% of premium on claims; many pay more. In addition, the profit margins for health insurers are not atypical for any industry and are in line with your regulated electric utility.


Categories: Healthcare, Politics

4 replies »

  1. Mr. Quinn – educate me, please? – my Medicare supplemental premiums are $1,980 / year and they are not paying out anywhere near 80% of that on claims – why am I not receiving a refund? – I figure, I only have to ask a dumb question once and maybe no one will notice – thanks


    • The quick reason is because it’s insurance. You need to view this on an aggregate basis. If you are not collecting your premiums in benefits count yourself among the lucky ones. Somebody else is incurring far more in claims than they are paying in premiums. If a refund was provided to low users, the really sick would have astronomical premiums to cover their costs.


  2. Everyone who believes HRC would do anything to help the average insurance rate payer is on some damned good drugs.
    It is a good sound bite plain and simple. Years ago when she said workers wages needed to be increased, she was laughing all the way to the bank while setting on the board of Wal-Mart.

    In six years as a member of the Wal-Mart board of directors, between 1986 and 1992, Hillary Clinton remained silent as the world’s largest retailer waged a major campaign against labor unions seeking to represent store workers.

    Clinton has been endorsed for president by more than a dozen unions, according to her campaign Web site, which omits any reference to her role at Wal-Mart in its detailed biography of her.

    Wake up America. It is all smoke and mirrors out of Washington D.C. Mark Twain said, “If voting made any real difference they would not let us do it.” True then, even more so, today.


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