Some may think requiring a carrier to spend X percent of premium dollars on claims to be a good thing, but like everything else the government does, it has consequences.
The U.S. Health and Human Services department announced Tuesday it's delaying for three years a requirement that insurers spend 80 cents to 85 cents of every premium dollar on medical care and quality improvement after one of three insurers offering individual plans in Maine threatened to withdraw from the state.And the carrier is . . .
MEGA Life and Health Insurance Co. has 37 percent of the state's individual market. Maine's insurance superintendent says MEGA would probably withdraw if it had to meet the federal standard. Maine's current standard is 65 percent.Of course you may ask why Maine only has 3 carriers (Blue Cross being another) offering health insurance.
Because Maine had Obamacrap before Obamacrap did.
Carriers in Maine are required to issue a policy to anyone, regardless of their health, and cover their pre-existing conditions. That alone causes health insurance premiums to be among the highest in the nation . . . at least for now.
The rest of us will catch up by 2014 when it will be cheaper to buy a top of the line Porsche than a basic health insurance plan.
Found out from an agent in Maine the third health insurance company is Dirigo.