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President Obama guaranteed Americans that after health reform became law they could keep their insurance plans and their doctors. It's clear that this promise cannot be kept. Insurers and physicians are already reshaping their businesses as a result of Obama's plan, says Dr. Scott Gottlieb, a former official at the Centers for Medicare and Medicaid Services, a fellow at the American Enterprise Institute and a practicing internist.
The health reform law caps how much insurers can spend on expenses and take for profits, explains Gottlieb:
Starting next year, health plans will have a regulated "floor" on their medical-loss ratios, which is the amount of revenue they spend on medical claims.
The spending cap is 15 percent for policies sold to large employers.
They also have higher medical costs, owing partly to selection by less healthy consumers