Scottsdale, AZ -- (SBWIRE) -- 07/11/2012 -- There are two provisions in the Affordable Health Care Act that the insurance companies do not want you to know about. These provisions are going to make the health insurance business an unprofitable business. They will be out of business in a very short time. The cost of health care will go down.

First, health insurance companies must now have a medical cost ratio of 80% for individuals and 85% for groups. That means that they must spend that percentage of their revenue for payments to providers. It does not include overhead, marketing and other non-direct medical costs. Total administrative costs have been 31% and the overhead for insurance companies is 11.7%. The administrative costs for medicare are 3.6%. Any revenue over the 80% or 85% must be refunded. Health insurance will become an unprofitable business.

Second, section 1334 of the act provides that The Office Of Personnel Management, an agency of the Department of Health and Human Services can sponsor at least two plans for sale in the insurance exchanges in each state. These government plans can be subsidized. Even if they are not subsidized the administrative costs will be approximately the same as medicare, 3.6%. The OPM plans will be at least 15% less expensive than other plans. The exchanges are by state so I would expect that the OPM plans will be administered for each state.

The US is the only nation where a for profit insurance structure exists between the health care provider and the patient. It is my belief that health care is a right and not a privilege. It is also my belief that making a profit from the poor health of another person is immoral. Canada has a single payer health care system that has been operating for over forty years. It is administered by the provinces and paid for by the federal government. They are healthier as a whole than we are. Their costs are lower. Our government is already spending over 60% of the total cost of health care. Add to that what employers and workers pay for health insurance and it is clear that a universal single payer system is cheaper. We can have it and have lower expenses for business and for people with a far better outcome.

The topic of health care is covered in my book Occupy We The People Decision Time For America. Many other important issues are also discussed. I feel strongly that this is the most important book published in years. Every American should read this book before they vote. The E Book is only $2.99 on special promotion and there are links on my Victor Weintraub website.

Victor Weintraub is a noted author, economist and entrepreneur. He is the Publisher of First Capitol Books, an independent publisher of E Books and print books distributed world-wide. He is the President of First Charter Financial Corporation. He holds a degree in engineering from New York University and an MBA from Columbia Graduate School of Business. Victor Weintraub is an advocate for progressive political and social programs. He is a lifetime Republican. “I am saddened by what has happened to the Republican Party.”