Quote:
Originally Posted by Danzig
on the other hand, you do raise a valid point. who will pay when the bills are higher than the money from premiums? oh wait...i bet i know. the same people who pay for every other govt program that doesn't quite do what it says it will.
|
But strangely, insurance companies have jumped on participation in this, welcoming 30 million newly insured to their ranks. So there must be profit there, or they wouldn't want in. Normally insurance companies refuse to ever insure about 10%, decline to insure another 20% for some things, then insure the remaining 70%. And rescind every one of them they can if a hugely costly thing happens. No wonder they get a huge profit margin.
But, for every person in that 30% who has kidney failure and is on dialysis, or has uncontrolled Type II diabetes, or has had cancer cured or active, you have someone who is really rather healthy and won't have those costs (the 20%)
So they are betting the pool will break even at worse, which seems likely. The 20% will pay for the 10%. The 10%, who are uninsured and only getting expensive non-routine interventional care now, will get routine care that will bring down their costs markedly and help ameliorate the expensive disasters treated infrequently. There will be profit - not huge, but definite profit.
They will keep the very healthy 70% out of these pools, and rake in even more increased profit there.
Insurance company stocks have gone up over the past two years, and I don't expect that to change. When the pros say there will be profit there, believe them.