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Clearing the Browser Tabs – Health Insurance Meddling Friday Edition Posted: 02 Sep 2011 03:10 AM PDT Something happened yesterday to your health insurance company that you might not know about. A provision inside Obamacare kicked in that gives the federal government the power to investigate any company that raises their premiums “in the individual and small group marketplace” ten percent or more, for any reason. So let’s say that Blue Cross sees that its costs have risen dramatically because of other provisions of Obamacare and they want to adjust their prices to keep pace. Well, your state or the Department of Health and Human Services can compel them to explain themselves and to post that explanation on their web site. Sounds fairly innocent, doesn’t it? Except for this question: What right does the government have to compel any company to explain itself? That is our job as consumers. We put pressure on companies to do business the way we wish or we take our business elsewhere. But then we run into a fundamental problem with health care insurance. We are not customers. Most of us who have health insurance through our employers do not choose the company that insures us. Our employer makes that choice for us and the insurance companies woo the employers and not us. However, thanks to government meddling that restricted our choices and turned is into liabilities instead of customers, we bring no economic pressure to bear. And now the government is meddling even more and you bet that we will not see a benefit from it. And now, links!
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