Court Considers Health Law Fate If Coverage Rule Voided

[xchrom]

http://www.bloomberg.com/news/2012-03-28/high-court-considers-fate-of-health-law-if-coverage-rule-voided.html

The U.S. Supreme Court today will consider how much of President Barack Obama’s health-care law must be thrown out if the justices decide Congress can’t require Americans to buy medical insurance.

The debate on so-called severability took on added significance after questions from justices yesterday indicated a majority might strike down the insurance requirement. Today’s session will conclude three days of hearings, six hours in all, the longest in 44 years.

The impact of the coverage mandate on the rest of the law is among the most important issues for the health-insurance industry. If the court strikes down the requirement, insurers want the justices to toss out provisions that forbid them from refusing coverage or charging higher premiums to people with pre-existing conditions.

Invalidating only the individual mandate would be the “worst-case scenario” for insurance companies, said Paul Heldman, a health-policy analyst at Potomac Research Group in Washington. “That would create an unstable market for insurers in which they would be stuck covering the most expensive people while leaving the healthier people off the insurance rolls.”

[democrat_patriot]

1. Which is why the insurance lobby is calling the conservatives judges as we speak.

And this thing remains intact. 9-0

[denverbill]

2. Sorry but the insurance companies prefer the status quo by a big margin.

Remember, the law mandates they spend 85% of their premiums on health care.

[obxhead]

3. And for the last decade the larger ins companies have run at

around a 5% profit margin.

They love this law and welcome the new influx of cash about to hit them.

[SidDithers]

4. 85% on health care does not mean 15% profit...nt

Sid

[denverbill]

5. Executive salaries and bonuses, sales commissions, and other administrative costs

are deducted from your income to arrive at your profit. They could currently spend 95% of every dollar received on executive compensation (assuming they didn't pay any claims) and have a 5% profit margin.