Georgia and eight other states are pleading with the federal government to relax the Obama-Care rule that insurers have to spend particular percentages of their premium revenue on medical care, administration, overhead and so forth.
Why are they asking for that exemption?
Well, insurers in the states are having trouble making a go of it under ObamaCare’s dictation of just how much profit they can make. So they’re having to consider pulling out of some states altogether. That would mean higher costs and fewer options for care for the residents of those states.
In fact, the Obama administration has already had to exempt Maine from the rule that a minimum of 80 percent of premium revenue has to be spent on medical costs and quality improvements. The second-biggest insurer in Maine, MegaLife, had said it would have to leave the state if it did not get relief from the requirement. The U.S. Department of Health and Human Services admitted that MegaLife’s pullout could have forced thousands of people to buy far more costly health policies from other insurers in Maine.
In Georgia, meanwhile, it is estimated that 100,000 people have policies with insurers that could be forced to leave the state because of ObamaCare’s mandates, Kaiser Health News reported. That would leave them with few affordable options.