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Yesterday we got an email from one of our individual health insurance companies, notifying us that they've stopped writing new policies in Michigan.

They cited the health care reform MLR requirement, that forces them to pay out a certain percentage of their revenue for claims. The problem is that in individual insurance, the administrative costs are significant, because every policy has to be approved and processed one-by-one. Smaller companies also have fewer policies to spread their expenses over.

The bottom line is that we have one fewer option for our Michigan customers. Thankfully we have other carriers (for now). But I worry about the long-term implications of the law on health insurance. Fewer competitors means less choice and higher prices for consumers. And that's the opposite of what we want!

One lesson: stay informed, about what's going on in the news, and in Washington. Sooner or later, it affects you personally.
Posted 1:55 PM  View Comments

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