[T]he MLR caps will also limit innovation. Right now, expenses that are on a pre-approved, government list of “activities that improve health care quality” are not included in the cost of administration and so don’t count against the 20 percent cap on what plans get to spend on overhead. If a health plan comes up with a new business approach that it believes improves quality and outcomes, it will be forced to count the costs against its allowable profits. It can’t incorporate the cost into the total money it spends on healthcare if the new scheme isn’t on the government list."
"In recent weeks, I've talked to a handful of large healthcare firms and medical practices that offer specialty medical services. I asked them what kinds of prices they're soliciting from the new health plans now taking shape under Obamacare. These providers said that they're demanding, and in some cases securing, pretty rich reimbursement rates from the new, Obamacare health plans."
"The High Cost Plan Excise Tax, which is often referred to as the 'Cadillac Tax' is one of the revenue raising provisions in the 2010 Patient Protection and Affordable Care Act. The excise tax is calculated by comparing the cost of an employer-sponsored plan (which includes premiums paid by the employer and/or employee as well as any contributions into health accounts such as health savings accounts of flex savings accounts) to a benchmark, which will be adjusted every year based on the Consumer Product Index (CPI). Any amount above the benchmark is taxed at 40 percent; this tax is levied on the health insurance company but is generally understood to be passed onto the consumer, or firm purchasing that plan."
"Obamacare is imposing a minimum benefit for insurance that is in excess of what many consumers purchase on their own today. And the law is imposing many new rules on what insurance companies may and may not take into account when setting premiums. There is no experience anywhere indicating that these kinds of changes will lower premiums. And there’s an abundance of evidence from state experiments indicating that these changes will increase premiums, and probably quite substantially."
"Mr. Alito pointed out that young, healthy adults today spend an average of $854 a year on health care. ObamaCare would require them to buy insurance policies expected to cost roughly $5,800. The law, then, isn't just asking them to pay for 'the services that they are going to consume,' he continued. 'The mandate is forcing these people to provide a huge subsidy to the insurance companies . . . to subsidize services that will be received by somebody else.'"