Larry Kocot Quoted in “Insurance Companies Could Get Pinched with Latest ObamaCare Delay”FOXBusiness December 13, 2013
Larry Kocot, a Member of the Firm in the Health Care and Life Sciences practice, in the Washington, DC, office, was quoted in an article titled "Insurance Companies Could Get Pinched with Latest ObamaCare Delay."
Following is an excerpt:
The latest deadline delay for the Affordable Care Act could lead to even more enrollment problems and place a bigger burden on insurance companies, experts say. ?...
While auto insurance companies can seemingly enroll individuals within a few hours, the health-care enrollment process is much more cumbersome, says Larry Kocot, visiting fellow at the Brookings Institution. He says the new legislation has complicated an already-difficult industry to navigate.
"With auto insurance, you are insuring against an event that would cause damage. With health insurance, you are insuring the cost of the utilization of health care, which is inherently more expensive. We have never had the government running the individual or small group market, and the government has established rules that may not be the most friendly to the industry." ?...
That being said, Kocot says insurance companies have a tremendous incentive to make it work.
"They will do all they can to assist the administration in making this work," he says. "They won't have the happiest of holidays, as the applications continue to accelerate and will have to be processed. But, the benefit outweighs the cost."