Your Junk Insurance Is About to Get Worse, Courtesy of Max Baucus & Rahm Emanuel
By: Jane Hamsher Monday August 24, 2009 9:54 am

If you think your insurance is expensive and doesn’t cover much now, wait until the Senate Finance Committee bill gets jammed through the Senate:

In May, the Senate Finance Committee discussed requiring that insurers reimburse at least 76% of policyholders’ medical costs under their most affordable plans. Now the committee is considering setting that rate as low as 65%, meaning insurers would be required to cover just about two-thirds of patients’ healthcare bills. According to a committee aide, the change was being considered so that companies could hold down premiums for the policies.

Most group health plans cover 80% to 90% or more of a policyholder’s medical bills, according to a report by the Congressional Research Service. Industry officials urged that the government set the floor lower so insurers could provide flexible, more affordable plans.

Why is it necessary to cut benefits in order to “hold down premiums?” Well, because you have to factor in a big fat profit for the private insurers. Who are already making out like bandits with a huge new pool of potential customers who are forced to buy their product. Take a look at the way health insurance stocks have shot up over the past week compared to the S&P. Wall Street is licking its chops.

Sorry, folks. No public plan, no mandate.

I had shown a clip from Keith Olbermann from last week, talking about this very issue.

CASINOS IN VEGAS don’t get the kinds of margins that BAUCUS wants to give insurance companies.

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