Health Care: What does the bill do?

One of the few things I know about the health care legislation is that it forces everyone in the country to buy insurance from an insurance company, with the idea that this will lower the premiums people pay because there will be more healthy people paying into the system, and this increased revenue (FOR THE INSURANCE COMPANIES) will subsidize the sick people.

My question is this: what's to stop the health care insurance companies from increasing the cost of the premiums for everyone? Does the legislation regulate the prices that health care insurance companies can charge, too? If so, how and by what standard?

1 comment:

Catherine! said...

I believe Secretary Sebelius of the Department of Health and Human Services will have the power to set rates...someone correct me if I'm wrong.

Also, notice that for some people it will be cheaper still to pay the fine rather than purchase health insurance. If pre-existing conditions are no longer cause for insurance companies to restrict care, then these people who opt out can march merrily along, not paying into the system, until they get whacked with some massive health issue that requires serious funds. The insurance companies can't deny them coverage, and now someone who hasn't paid their "fair share" into the system will receive cadillac care.

So, that kind of seems like a problem to me.