Beneficiaries, who are sicker than folks in an average insurance pool, could dominate the exchanges.
FORBES: The New Obamacare Insurance Is Looking More Like Medicaid
That is never a very good idea when attempting to maintain a balanced insurance pool.
In just two weeks, Americans denied coverage because of preexisting conditions will be able to enroll in a new national insurance pool.
The insurance pool is the Mutual Mortgage Insurance (MMI) Fund and a Congressional mandate requires that this fund maintain a 2% reserve.
FORBES: How The Payroll Tax Cut Is Costing Low Income Borrowers
Costs were supposed to come down, and they would thanks to an individual mandate that would force healthy people into the insurance pool.
Absent the FDIC, insurance companies would quickly fill the role of insuring deposits absent the tragedy of the commons that comes with a government run insurance pool.
FORBES: Book Review: John Allison's The Financial Crisis and the Free Market Cure
When the younger and healthier segments of a population are excluded from an insurance pool (whatever the mechanical or financial reason), the rate for everyone else gets ever closer to actual cost.
Supporters of guaranteed issue argue that it will improve the market for people with pre-existing conditions and, when combined with a mandate that everyone must buy insurance, eliminate the problem of the insurance pool only attracting sick patients.
And that will mean more costly, sicker and older folks left covered in the insurance pool, which will cause premiums to soar further, which will cause still more individuals and employers to drop coverage, which means still more uninsured, and the chaos of a financial death spiral for private insurers.
By removing 65 and 66 year olds from a Medicare program where they are the youngest and least likely to use Medicare funds to pay for their illnesses, we are placing them back into the private insurance pool where they instantly become the oldest and, therefore, the most likely to get sick.
And, look, I mean, to be perfectly blunt about it, it's important to get as many people as possible involved in this great insurance pool, if you will, including younger, healthier people who may need to go to the hospital, who may get sick, but who are less likely to than people who are 70 or 80 years old, or people who have preexisting conditions.
But as these workers leave traditional insurance, the risk pool in other insurance plans will worsen and premiums will rise even faster.
ECONOMIST: America's health-care crisis: Desperate measures | The
You expanded the pool of insurance without controlling costs.
FORBES: Romneycare Official: 'I Would Never' Try to Reduce Health Costs
Massachusetts ex-governor and former healthcare reformer himself, Mitt Romney, is advocating abolishing Obamacare altogether while endorsing reforms such as allowing individuals to purchase healthcare insurance across state lines, increasing the tax-free savings limits for medical expenses, and allowing small businesses to pool risk for insurance discounts.
You might even say health insurance companies and their ability to pool resources are responsible for every medical advancement since 1960.
FORBES: We Probably Spend Too Little On Health Care (Unless You're Peter Orszag)
Therefore, Congress is limited in how it can act with regards to supply-side regulations or price points, and has elected to pursue the individual mandate as a means to lower the cost of insurance (by increasing the consumer pool).
FORBES: The Economics of the Mandate Don't Matter: It's Constitutional
It's a very straightforward principle that says we're going to set up an exchange, a pool, where people who don't have health insurance and small businesses who can't afford it right now can buy into the pool.
WHITEHOUSE: President Obama Holds a Town Hall in New Hampshire
The larger your risk pool is, the cheaper insurance usually is overall.
Creating a European equivalent of the FDIC -- through a banking union -- would pool the eurozone's insurance to guarantee bank deposits, and thus reassure investors.
As a rule of thumb, a functioning insurance model requires 80 percent of the pool to be healthy to support the cost of the 20 percent who get sick.
Our legislators should also make it easier for small businesses to pool their resources to buy insurance and should allow the self-employed to deduct their health expenses in full -- now.
Supporters argued the individual mandate is critical to the success of the legislation, because it expands the pool of people paying for insurance and ensures that healthy people do not opt out of having insurance until they need it.
CNN: Emotions high after Supreme Court upholds health care law
Supporters argue the individual mandate is critical to the success of the legislation, because it expands the pool of people paying for insurance and ensures that healthy people do not opt out of buying insurance until they needed it.
CNN: Supreme Court decision on polarizing health care law looms
Suddenly, just like the federal employees -- there are millions of them so they can drive a harder bargain with insurance companies -- you, as an individual or a small business owner, could be part of this pool, which would give you more negotiating power with the insurance companies for lower rates and a better deal. (Applause.) Right?
Adults who are uninsured because of pre-existing conditions will have access to affordable insurance through a temporary subsidized high-risk pool.
And the insurance companies can then kind of package and pool providers of dental care or eye wear or what have you, and it's a one-stop shop for seniors.
According to Christine Eibner, a Rand economist and an author of the study, businesses with 50 or less employees will additionally experience lower costs by 2016 thanks to their being able to join a substantially larger pool of buyers thanks to the state insurance exchanges.
FORBES: Small business projected to be big winner in healthcare reform
She wound up in a special Maryland state pool for people who can't get insurance.
To implement Idea 1, you need young people to buy insurance and pay a stream of premium payments into the pool.
应用推荐