The new Chevy Volt costs about $40,000. In that price are all the costs of production, advertising, all of GMs administrative costs. In other words, all the costs of doing business.
But that is not so for health insurance companies when trying to comply with new Medical Loss Ratio rules. There are those in the Obama administration who want to disallow many administrative costs and some salaries when determining the percentage of premium not used toward health insurance claim payments.
One has to wonder why there is a need for micromanagement by the federal government. During the health care debate we were told the secret to lowering costs was to increase competition among insurance companies.
Sooooooo, if an insurance company is inefficient, overspends on salaries or even marketing, its premiums will be non competitive especially considering that the benefits offered have now been standardized.
Where are we headed with all this control?
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