I haven’t called into the show for over a year, but I thought I had a good question to possibly stump ‘The Great One’. As always he had a good answer but I think he appreciated my question. Basically, the insurance companies must pay 85% of their premiums out in claims and if they don’t they are forced to refund it to their customers. The problem is, it used to be 65% and the rest they would use to pay for running the business (salaries, overhead, claims insurance, etc.). Now only 15% of premiums can be used toward overhead. Many fear this will bankrupt the insurance companies and since it’s a regulation in the bill, defunding the bill doesn’t appear to tackle this problem that could create an insurance crisis in a couple of years. If that happens, it could lead to a government takeover because of the crisis.
So I posed this to Mark and here’s his answer: