Obama Admits He’s “Not Familiar” With House Bill

http://www.heritage.org/2009/07/21/morning-bell-obama-admits-hes-not-familiar-with-house-bill/

Audio:
http://www.realclearpolitics.com/video/2009/07/21/obama_not_familiar_with_key_provision_in_health_care_bill.html

"... a blogger from Maine said he kept running into an Investors Business Daily article that claimed Section 102 of the House health legislation would outlaw private insurance. He asked: “Is this true? Will people be able to keep their insurance and will insurers be able to write new policies even though H.R. 3200 is passed?” President Obama replied: “You know, I have to say that I am not familiar with the provision you are talking about.”

"The House bill does not outright outlaw private individual health insurance, but it does effectively regulate it out of existence."

Text of HR3200:
http://www.opencongress.org/bill/111-h3200/text?version=ih&nid=t0:ih:253

Quotes from the HR 3200:
Sec 102 (2) LIMITATION ON CHANGES IN TERMS OR CONDITIONS- Subject to paragraph (3) and except as required by law, the issuer does not change any of its terms or conditions, including benefits and cost-sharing

Sec 102 (1) IN GENERAL- Individual health insurance coverage that is not grandfathered health insurance coverage under subsection (a) may only be offered on or after the first day of Y1 as an Exchange-participating health benefits plan.

Sec 102 (3) RESTRICTIONS ON PREMIUM INCREASES- The issuer cannot vary the percentage increase in the premium for a risk group of enrollees in specific grandfathered health insurance coverage without changing the premium for all enrollees in the same risk group at the same rate, as specified by the Commissioner."

SEC. 111. PROHIBITING PRE-EXISTING CONDITION EXCLUSIONS.
(1) A qualified health benefits plan may not impose any pre-existing condition exclusion (as defined in section 2701(b)(1)(A) of the Public Health Service Act) or otherwise impose any limit or condition on the coverage under the plan with respect to an individual or dependent based on any health status-related factors (as defined in section 2791(d)(9) of the Public Health Service Act) in relation to the individual or dependent.

SEC. 116. ENSURING VALUE AND LOWER PREMIUMS.
(a) In General- A qualified health benefits plan shall meet a medical loss ratio as defined by the Commissioner. For any plan year in which the qualified health benefits plan does not meet such medical loss ratio, QHBP offering entity shall provide in a manner specified by the Commissioner for rebates to enrollees of payment sufficient to meet such loss ratio.

Medical Loss Ratio Defined
"The portion of health plan revenue that does not cover administrative or marketing expenses, taxes and profits."

"Viewed from different angles, a measure of the profitability of a health insurer, the quality of health care enjoyed by its customers, the competitiveness of pricing in the marketplace or the efficiency of its non-medical activities."

"For Aetna, a figure [medial loss ratio] that increased last quarter from 74.6 to 79.4, causing a 20 percent plunge in its share price when it was announced."

This will essentially be price setting and will put private insurers out of business.