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The left blogosphere is denouncing Obamacare as a triumph for private insurers. But Robert Book of the Heritage Foundation argues that it is much more plausible the operations of the plan will extinguish the private insurance industry.
The Senate bill would force private plans to spend a minimum amount on paying medical claims and tax excessive premiums. The tax on those premiums however would not count towards the limits.
As Robert Book explains:
It would be very easy for regulators to become to develop a plan “with a minimum benefit package that is high enough (say, above $8972 in average claims) that makes it literally impossible for health plans to break even, let alone make a profit.
Sam K. Theodosopoulos is the Editor-at-Large of the GW YAF Blog.