Does the government’s plan for private insurance companies make good business sense?
A. §113(a) limits insurance companies’ ability to offer varying premium programs as would be expected and normal in a competitive, free-market situation. §115 requires provider networks to meet standards set up by the Commissioner. So much for competition – one flavor of Kool-Aid for all. §116 requires insurance companies to meet loss ratios defined by the “Health Choices Commissioner.” If their claim payouts aren’t high enough, they will not be allowed to keep profits for loss reserves or dividend payments to investor shareholders. Such profits must be immediately repaid to policyholders. Somehow, the failure to establish adequate reserves seems to fly in the face of prudent insurance administration! The government trying to run a business makes no sense. Just compare the U.S. Postal Service to UPS and FedEx. The USPS loses about 2.5 billion a quarter! UPS and FedEx are both historically profitable, even in the current recession. Northern Nevadans are well aware that the U.S. Governme
