Writing in the Investor’s Business Daily, David Hogberg reports:
A new Obama administration rule could drive out of the market the low-cost, high deductible plans that are supposed to be available under[ ]. That would likely mean a sharp jump in taxpayer subsidies.
The problem stems in large part from contradictions in the hastily written health care overhaul.
Starting in 2012, ObamaCare requires insurers in the individual or small group (small business) market to spend at least 80% of premiums on medical costs, leaving 20% for salaries, advertising, fraud prevention, profit, etc. For large groups, this medical loss ratio (MLR) must be 85%.
Via the Galen Institute.