- Mar 11, 2015
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What's "reasonable" if you have cancer?What they are asking for is reasonable rates. They are not saying they should pay nothing. Quit lying.
Insurance premium cost consist of risk rates for the pool plus adminstrative costs and a profit for the company administering the funds.
We have pretty good estimates of the number of people in pool that could get cancer or other high cost diseases and can reasonably estimate the cost to the pool.
When you have somebody come into be the pool with high cost that haven't paid in because of government mandated acceptance of pre existing conditions that drives up the cost for everybody else.
I AGREE with your statement 100% ! Now the dumb asses will complain about the "profit" issue !
These dummies don't seem to realize that the insurance companies have to have reserves for future claims otherwise the states' insurance regulators won't let them sell!
Now these reserves against future claims come from those NASTY profits...i.e. what is left after paying claims, administration,etc. profit!
I hope these dummies also understand that the so called "non-profit" insurance don't have to pay taxes! So again those evil profit making companies HAVE to pay taxes which is
deducted first from profits and then what is left is for "reserves".
I know YOU know this but these "hate capitalists" "evil profits" idiots don't seem to understand what "profits" really are used especially for building reserves!
Things just aren't this simple.
It is simple.
1) States' regulators require insurance companies to show they have reserves to cover future claims.
2) If the companies can't show they have the reserves, they won't be able to do business in the states.
3) Reserves then come from premiums minus expenses and expenses include claims paid.
4) What is left is profits out of which reserves are calculated against future claims.
5) If there are no profits to create reserves NO future sales.
It is that simple.
Now how the companies can control future claim costs is to KNOW the health of the insured except in most group plans since the administration costs are far less for a 1,000 member group plan than 1,000 individual insurance policies. HENCE pre-existing conditions are calculated in the group plan... but is ONLY POSSIBLE in individual plans if the
assumption is which was the case under ACA that ALL the applicants have some pre-existing condition and as a result the premiums have to be increased.
It was that simplicity that caused Anthem to Aetna, major health insurers are leaving ObamaCare marketplace.
Only 28 percent of enrollees in Obamacare in 2014 were in the 18 to 34 age group; Obamacare requires a 40 percent threshold to operate optimally.
Why are Insurers Leaving the Health Insurance Exchanges - Boost! Health Insurance
So again, it was the fundamental stupidity of ACA's architects who among them the was Jonathan Gruber who said:
"And basically, call it the stupidity of the American voter or whatever, but basically that was really, really critical for the thing to pass."
ObamaCare architect: 'Stupidity' of voters helped bill pass
I hope you can understand that the gross efficiency costs of a group policy/employer paid allows no "pre-existing conditions" requirements...unlike individual policies.
And by the way not only the stupidity as Gruber called it BUT the outright LIES Obama told like:
1) "We are not a nation that accepts nearly 46 million uninsured men, women and children,
And HE included 11 million illegal aliens, along with 14 million Medicaid eligibles that his administration NEVER enrolled BEFORE ACA.
2) "Up to half of all Americans have a pre-existing condition."
Half would be 160 million! FACTS
A total of LESS THEN 1.5 million Americans who were denied health insurance or paid higher premiums due to pre-existing conditions.
Obama's Pre-existing Conditions Whopper
OBTW, the ACA was based on a republican conservative plan by the heritage foundation. These are republican ideas.