Government’s the medical payer of last resort

[Supposn]

I suppose that all commercial medical insurance policies are “capped”. If that’s the case than EVERY American, (even those medically insured), are actually dependent upon government as their insurer of last resort.

Couldn’t the federal government cover extraordinary annual medical expenses for each individual patient? Extraordinary expenses would in most cases be the amount beyond which commercial insurance is realistically unavailable. If we are to prohibit terminating sick people’s insurance or targetting them with increased cost, isn't government re-insuace needed?

This can not be described as government competing with insurance companies. This is to cover companies' unacceptable risks. This does not actually increase government spending because these medical expenses are currently being paid by the government.

Just as participating banks pay for their FDIC insurance, insurance companies who choose to participate would pay for this very high deductible reinsurance of their clients.

Wouldn’t this somewhat decrease medical insurance prices? Wouldn’t this mitigate insurance companies’ motivation to terminate medical insurance for some people? This would not solve our medical insurance problems, but it would be an improvement of what now exists?

Respectfully, Supposn

 

[Old Rocks]

In a sane, responsible environment, it would lower costs. In the present environment where anything to make a buck is the dominent philosophy, it would not.