ObamaCare Forces Texas Health Insurance Companies to Close

Texas health insurance company closesAs the ObamaCare veil continues to be lifted, it’s further exposed as a cavalier, irresponsible piece of legislation wrecking havoc on Texas health insurance. From its severely high costs to negative results like doctors dropping Medicaid and insurers being forced to close up shop, health care reform has already caused more pains than gains.

And these unfortunate consequences are hitting close to home. According to the Dallas Morning News, “Grand Prairie-based National Health Insurance Co. said it could no longer offer individual accident and health insurance policies. It blamed its decision on the company’s inability to meet requirements of the health care overhaul signed into law this year.”

Starting January 1st, the law requires that health insurers meet a specific medical loss ratio, which is the percentage of an insurer’s premiums spent on medical services for its customers versus administrative costs. The law views certain tasks—like liaising with doctors, protecting patient information and preventing insurance fraud—as administrative even though they significantly improve quality of health care and lower costs. As a result, costs for insurers will rise, the quality of health care will fall, and quality Texas health insurance companies will struggle to stay afloat.

Jared Wolfe, executive director for the Texas Association of Health Plans, believes that “there are a number of plans who won’t be able to meet this requirement and will simply exit the market.” Many health economists say that more small insurers like local National Health Insurance Co. may soon buckle under the weight of the law’s mandates.

The individual Texas health insurance market has higher administrative costs for insurers than the large group market, so as small Texas health insurance companies fight to stay in business, consumer options will be reduced. ObamaCare was supposed to increase access to health care, not decrease it. It’s just one more example of why the pains are not worth the gains.


  1. Tina says

    I believe that the plan was to weed out all the insurance companies that were taking advantage of people in the first place, and not covering the insured once they put in the claims, The budget they have to pay people to find an excuse to not cover people is outrageous. This new health care plan as you call it “Obama Care” is finally taking action on these unscrupulous companies. I say it is about time. Please lets stop with all the fear mongering that people are trying to impose on people and start calling it for what it is. Finally Someone standing up to these insurance companies.

    • says

      Tina, I respect your opinion however since I am intimately involved in the health insurance business I think i can speak with
      expertise and not just emotion and rhetoric. Let me first give you the facts. This Health Care debacle has nothing to do with health care reform. If it were and it was so great can you name one democrat who voted for this monstrosity that will defend it or run on it if they are running for public office this November just one? as a matter of fact they are all running from it.. Lets take the emotion out of this and just state the facts. If you remember this was a health care plan that 65% of the American people were against yet they jammed it down our throat anyway with sleazy back room deals and payoffs to gain votes. They completely left out Tort reform which is 1/3 of the cost of rising Health care premiums. Didn’t you find that strange that it wasn’t even mentioned or included? And the reason for that? The Bill was written by Lawyers. No mention of what malpractice costs? Was Health Care reform needed? Absolutely but not Transform the entire Health System when we are at the Brink of Bankruptcy as a nation and then add another 2 Trillion dollars of debt and add 30 million people onto the rolls and then to have the Audacity to go out there and tell the American People that this will lower costs and improve the Quality of Care is a joke.

      Unless you live in a cave or live in France who would ever believe that. But the most egregious thing this Bill does is violate the Constitution and for the first time in History to Force a Tax payer yes you to buy health Insurance or get fined yes fined. Does that sound American to you? Lets just say you cannot afford health Insurance or you are healthy and do not want to buy Health Insurance or maybe you need to send kids to college and you you chose to forgo health insurance right now and use the money elsewhere this Bill is saying NO NO you have to now help pay for the 30 million people we are going to Insure whether you like it or not. And remember you will be paying for the guy next door who is 400 lbs smokes 3 packs a cigararetts and drinks 4 six packs a beer a night and doesn’t care about Health Care or wants it. You now will be paying to subsidize him with Higher Taxes or fines. Is this what you think is fair? Shouldn’t you have the choice to buy or not Buy health Insurance if you want isnt this America?

      As far as pre-existing conditions, states have Risk Pools or State plans to assist those with pre-existing conditions . the States could easily expand and offer tax credits and the Govt could subsidize that to provide coverage for the uninsurable. I know how much the anointed one and the Left loves to Demonize the Rich, the Banks, The car Companies, Wall St , Insurance companies. They need to find there Boogie Man to create and fuel class warfare and division and this administration does it better than anyone. But news Alert as far as your comment that it is about time someone makes the insurance Companies pay. There profit margins are only believe it or not 3 to 4 %. What Obama is doing is squeezing the Insurance companies because the end game is to squeeze them so much to put them out of business. So the Govt can then have a one payer system.. Kings X. They control Health Care…..Govt run Health Care is this what you really want? If you think Health Insurance is expensive now wait until it is free. I know you do not believe this but the United States even with it’s issues and it is not a perfect system but it is The US that leads the world in innovation and development of Drugs and medical devices that have saved or improved millions of Peoples life. Name one thing the Govt has run efficiently. I cannot for the life of me understand why you put so much faith in the Govt. I hope and pray that you will put your emotions aside and really start looking at the Facts . This Health Care Bill is nothing more than yet another Huge Entitlement program . The American people resoundingly were against this yet once again this administration has gone against the will of the people. How long and how much more can you defend this man’s Policy? Do you really think in your heart of hearts that he or his wife actually really like this country? take democrat, liberal, Republican, conservative out of the Pic. Does this really feel good to you in your gut? When He lectures us about how we can’t spend money in Vegas or we all need to tighten our belt buckle and he and his wife are using Airforce One and our Tax Dollars to live so high off the hog and take a 9 major vacations in one year does this not bother you? I pray that you will start looking at the facts and start digging into common sense values and stop letting your ideology blind you to reality.

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