Site for Free Markets and Free People

Tuesday, November 23, 2010

Obama Mandates Higher Medical Loss Ratios

With the stroke of a pen, Obama mandated via executive fiat that health insurers spend at least 85% of all revenue on medical costs (or 80% for smaller plans). This means that the remaining 15% is all that's left for overhead and administrative costs, as well as profits.

Of course, it's "for our own good". But what happens when prices are restricted? We already know - there will be much fewer insurers every year.

And then, finally, only the government will be around. Obama's communist remaking of the economy is well under way.