Insurers manipulate law to their gain

When I heard that the health insurance industry is raising rates, I was confused. President Obama’s Affordable Health Care Act will require that insurance providers spend 80 percent of their premiums on patient services. These insurance corporations will have to spend more on patients as their premiums rise. Why would they raise rates to see the new funds go out again to patients? Then I realized that the remaining 20 percent will increase also. By raising premiums, they will be increasing the amount they must spend on patients, while also increasing the amount left for profit.

These corporations are willing to soak the American people by raising health care premiums so that they can increase the remaining amount for their executive bonuses, stock options, and the increased stock value that comes with rising profits. Before Obamacare’s restrictions on health care spending, corporations could earn profits by squeezing benefits and raising premiums. Now they will be required to spend 80 percent on patient care, keeping the remaining 20 percent. Thus, they increase premiums to increase the amount they control.

Karen Wagner

Rolling Meadows