What if... (Health care)

[ryan]

Well, for one thing, if they can afford the $13,000+ for private health insurance, they likely won't qualify for the government subsidized health insurance.

So they'd be paying the fine annually, but still remain uncovered.

That's the point. They're going to pocket the $12,000 until they actually need the health insurance, and once something happens they can just sign right back up.

[ryan]

I do remember hearing about a "community rating" type system where it would cap them at either 150 or 200% of a healthy person. But i'm not sure it if was part of the House (didn't pass) or Senate bill (did pass).

Even if this is the case, the healthy people (Billy's family) aren't buying insurance, and therefore not subsidizing anyone, because they don't need to until they get sick. So who funds the medical bills in the meantime?

[Dougles]

Even if this is the case, the healthy people (Billy's family) aren't buying insurance, and therefore not subsidizing anyone, because they don't need to until they get sick. So who funds the medical bills in the meantime?

We do as tax payers!

[NBuffaloResident]

So does the bill fix this problem as well?

Is there something stopping insurance companies from charging $8,000+ a month, as long as they're offering coverage?

If not, doesn't this defeat the purpose of the bill?

Not yet. But once the SCHOPS are set up, then they will just have to drop their rates back down in order to gain entrance to the SCHOP marketplace.

[ryan]

not yet. But once the schops are set up, then they will just have to drop their rates back down in order to gain entrance to the schop marketplace.

schop?

[NBuffaloResident]

schop?

It's the open-exchange where individuals can purchase policies. To be set up by state.

In order for a carrier to gain entrance, they must not spend more than 15% of their income on profits and overhead.

[leftWNYbecauseofBS]

Some interesting items to note

Washington Post

And what happens if you don't buy insurance and you don't pay the penalty? Well, not much. The law specifically says that no criminal action or liens can be imposed on people who don't pay the fine. If this actually leads to a world in which large numbers of people don't buy insurance and tell the IRS to stuff it, you could see that change. But for now, the penalties are low and the enforcement is non-existent.

So how much of the COB estimates were based on collecting these fines? Since there is no teeth to the collection process, I doubt many people are going to pay. Do you think THIS could change the numbers?

The irony of the mandate is that it's been presented as a terribly onerous tax on decent, hardworking people who don't want to purchase insurance. In reality, it's the best deal in the bill: A cynical consumer would be smart to pay the modest penalty rather than pay thousands of dollars a year for insurance. In the current system, that's a bad idea because insurers won't let them buy insurance if they get sick later. In the reformed system, there's no consequence for that behavior. You could pay the penalty for five years and then buy insurance the day you felt a lump.

Nice topic Ryan. Looks like you are not alone in this thinking.

[Eat My Gun]

That's the point. They're going to pocket the $12,000 until they actually need the health insurance, and once something happens they can just sign right back up.

Ah, I get your point. Wow. I never thought of that. That's awesome. I'm canceling my policy until I need it!

But even with that option rates will go down. The CBO says so. So it's all good....

[mikenold]

I wonder what would happen if every private sector worker just opted out and only paid $2500.00 per year. The new health care system would be bankrupt in a matter of days!!!

[Dougles]

It's the open-exchange where individuals can purchase policies. To be set up by state.

In order for a carrier to gain entrance, they must not spend more than 15% of their income on profits and overhead.

What if NO HI company does this? Since you can't BUY across state lines what happens if one state, say CT can't find a HI company that qualifies?

[NBuffaloResident]

What if NO HI company does this? Since you can't BUY across state lines what happens if one state, say CT can't find a HI company that qualifies?

Trust me. No company in it's right mind would not dive right into a completely open market

Unless, of course, you think the laws of economics will just suspend themselves.

[Dougles]

Trust me. No company in it's right mind would not dive right into a completely open market

Unless, of course, you think the laws of economics will just suspend themselves.

No it's a serious question, what if in one state thie is no HI company that can keep overhead below 15%? Keep in mind the reason why medicaid and medicare run so "cheap" is they don't do any of their billing, they rely on all the private HI companies to do it for them!

[NBuffaloResident]

No it's a serious question, what if in one state thie is no HI company that can keep overhead below 15%? Keep in mind the reason why medicaid and medicare run so "cheap" is they don't do any of their billing, they rely on all the private HI companies to do it for them!

It would never happen. Someone will figure out how to do it. It's how economics works.

But, in the off-chance that it happens, guess what? We can amend laws in our country.

Stagnation equals failure. Progress equals survival.