What is FrankenHealth?
Obamacare on steroids.
Seems the folks who saved the auto industry, bailed out banks with Chinese dollars and gave us flaming electric cars now want to take health insurance to a whole new level.
The Obama administration will soon take on a new role as the sponsor of at least two nationwide health insuranceplans to be operated under contract with the federal government and offered to consumers in every state.
These multistate plans were included in President Obama’s health care lawas a substitute for a pure government-run health insurance program — the public option sought by many liberal Democrats and reviled by Republicans. Supporters of the national plans say they will increase competition in state health insurance markets, many of which are dominated by a handful of companies.NY Times, "US to sponsor health insurance"
For those too young to remember, private health insurance carriers offered health insurance to seniors before there was Medicare. Once the government assumed the role as primary insurer the carriers withdrew from that market.
If you are 65 or older, living in this country and want health insurance you get it via an employer group health insurance plan or from the government (Medicare).
This idea of inducing competition to bring down prices has a nice ring to it but the truth is, private industry cannot compete with the government unless they want to go bankrupt.
Of course the U.S. is already bankrupt so what is another gazillion dollars of added debt?
The national plans will compete directly with other private insurers and may have some significant advantages, including a federal seal of approval. Premiums and benefits for the multistate insurance plans will be negotiated by the United States Office of Personnel Management, the agency that arranges health benefits for federal employees.Wonder what a federal seal of approval looks like?
No one knows how many people will sign up for the government-sponsored plans. In preparing cost estimates, the Obama administration told insurers to assume that each national plan would have 750,000 people enrolled in the first year.These are the same folks that estimated upwards of 375,000 would enroll in PCIP.
At last count I believe they finally hit about 80,000 or so.
Of course they also keep moving the goalposts on the actual cost of Obamacare and PCIP is a money hole.
Under the Un-Affordable Care Act, at least one of the nationwide plans must be offered by a nonprofit entity. Insurance experts see an obvious candidate for that role: the Government Employees Health AssociationWonder if we can get some financials on how well that plan is working?
But the FEHB is not truly a national plan, but rather different plans in each state that are administered by approved carriers offering plans that must comply with state mandates.
Somehow I don't think FrankenHealth will have to follow the same rules.