NLIC.org

Esther Said:

Why does the left think that Insurance Companies are a socialist government program?

We Answered:

I don't.

However, I do think they are a little out of control. Health insurance company overhead is 20%. Here's an article documenting overhead among California insurers: http://www.masscare.org/wp-content/uploa… Medicare overhead is 2-3%. Does that help you see the issue? They have stopped competing against each other. It happens from time to time, and that's why we have regulators.

I worked for a few years doing software in the office of a group of cardiologists. The office people complained incessantly about the insurance companies. They were forever changing their forms and requirements, denying claims and then allowing them on resubmission. The insurance companies were playing games just to delay payment to the doctors.

And our office (and hospitals too) had to hire more pencil pushers just to deal with the obstreperous insurance companies. One army of bureaucrats working for the insurance companies and trying to deny or slow down claims and another army or bureaucrats, working for the doctors and hospitals, battling the first army. And patients end up paying for it all via insurance premiums. What a waste!

By the way: if you really believe the private sector can do a better job, then you have nothing to fear from the "public option." If your beliefs are true, the public option will cost more and deliver worse care, and the market will decide in favor of the private insurers. So what's to worry about?
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Laurie Said:

TX Insurance Broker Commission Law?

We Answered:

Here in Texas, a broker or agent can get paid via commission, OR via fee, BUT not both.

Now, that law applies to the broker or agent. SO, the WHOLESALER can get paid via the fee, and the RETAILER via the commission. But the retailer can't get commission AND fee.

Hope that's clear . . .

Katherine Said:

Isn't insurance at it's root a socialist idea?

We Answered:

No, insurance is not socialism. If it is, anyone with life insurance is a socialist.

You are right about the insurance MLR rule of 80. The bill will force insurance companies to pay at least 80% on medical care and 20% on other things. Currently, they pay 88% on medical care so most do not keep 20% for admin costs. At one point, the House Bill had the MLR rule at 90%. It is now 85%

http://angrybear.blogspot.com/2009/12/he…

Adrian Said:

National health insurance proposal?

We Answered:

Please explain to me, how an insurance company can make money paying out $10,000 a month in medical bills, while taking in $500 a month in premium. That's what you're proposing.

What's going to happen, is that all the super high risk people will RUSH to get this policy, and the regular, insurable people will continue to pay $250 a month for their private policies.

All premiums would rise. Yep. A LOT. Like, they would Quadruple. You have to take in enough to pay out, PLUS ADMIN COSTS.

Expense to premium ratios aren't 80% right now. For a really, really profitable company, it's closer to 95%. MOST run closer to 105%.

Age discriniation, sigh. The fact of the matter is, unless you want to pay CAR INSURANCE at the same rate as a 16 year old boy (yep, that's age discrimination too!) or LIFE INSURANCE at the same rate as a 90 year old man, PRICE COUNTS.

Most people don't squawk about age discrimination when it counts FOR them, only AGAINST them.

Just because it is DISCRIMINATION does NOT Mean it's unfair. It's FAIR, just like using number of DUI's on your record, to affect your auto insurance rates. THAT'S discrimination, too.

Becky Said:

Health insurance doctor visit definition?

We Answered:

Usually, an office visit is when you see the doctor, in their office - $25 copay. The coinsurance visit, is when you go into a hospital.

Collecting info on everyone ELSE'S coverage is meaningless - the more you pay for your insurance, the better the coverage is, pretty much straight across the board.