Saturday, September 8, 2012

Insurance/Bank closes regulations costs too high.

Nothing wrong with the company. it was just too burdensome to comply with all of today's regulations. The same will happen to hospitals after a few years of ObamaCare. Speaking of ObamaCare. The Obama administration is furious with insurance companies. WHY? Because the companies are trying to comply with the law. ObamaCare forces insurance companies to give rebates to their customers if their percentage of administration costs is deemed too high by the administration. Evidently, the rocket scientists that devised this portion of the law thought it would just mean smaller profits for the insurance company as it paid a penalty. But what has happened is that the insurance companies are acquiring smaller companies and laying off workers. This has the net affect of making the larger insurance company more efficient and avoiding the ObamaCare penalty. But the side effect is FEWER jobs and FEWER choices for consumers. In fact, it will also prevent the formation of new insurance companies as they won't be able to comply with the efficiency portion of the law. Even if the insurance companies don't acquire others, they are still laying off people to become more efficient. Brilliant. http://www.columbiatribune.com/news/2012/sep/08/shelter-to-close-bank-because-of-new-regulations/

4 comments:

  1. I got a $300 check out of the blue--------go figger!

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  2. Interesting that profit and loss are still the biggest motivations of companies. The government may try to influence them otherwise, but the companies still make decisions with this very narrow focus. This is what happens when you have career politicians. They have no clue about the way the real world works. Politicians are countering their bad decisions in influencing business by attempting to create a government centered Utopia.

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    1. Stormy
      Irrespective of all other considerations, a company simply cannot survive without primary regard to profit and loss calculations. The former is necessary to continue operation and the latter is what happens to the nation when the Government neglects the first principal!
      Cheers from Aussie

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    2. This is something that many career policy makers really don't understand fully. The government should set goals based on sound principals and economic feasibility. This is only accomplished when there is a good working relationship between the two. Our society has become so polarized that establishing a relationship seems impossible.

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