I am concerned with the attempt to fix rates

I read yesterday that States got 48 million from the Feds to police Health insurers and make sure they do not raise health insurance rates prior to the 2014 health exchanges, I am disturbed by this because it implies that Health insurers are on a path to gouge policyholders from now until 2014. I disagree with this assumption. I would agree that health premiums are high but I know that health companies are setting rates based on the costs of medical care. Health rates are high because people's lifestyles and eating habits and the overall cost to provide the best medical care in the world. This type of tactic will force the health insurers to reduce coverage and reduce payments to medical providers. There is no magic formula here. The exchanges will certainly find out in 2014 that rates have to be promulgated on losses and expenses. People are not going to get healthier and medical providers still need to get paid, so I do not see how health exchanges are going to be able to keep premiums down unless it is subsidized by the tax payer.  Until next time be careful out there and know your risks. K

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