I spoke to an HR manager today and the topic of the Public option in healthcare came up.
He said that if there is a public option, his compny would undoubtedly cancel their health insurace group plan. Why? Like most companies, his is self insured. An insurance company administers the plan, but the benefits are paid by the company. If there are few calims, the fund grows. If one person gets cancer, the fund is depleted and the unsupported costs grow.
The costs under the current system are not predictable. Businesses like predictability. He said if the fine for not providing insurance is 8%, that is predictable and a projectable cost of doing business. Businesses like this.
What happens if the one guy gets cancer in this case? The tax payer pays. Nancy has already told us, though, that the costs will never increase and the benefits will never decrease. Interesting math here.
Anyway, that's the opinion of one manager who understands how health care insurance works. It sounds pretty clear that most insurance companies are about to be legislated out of existance.
He said that if there is a public option, his compny would undoubtedly cancel their health insurace group plan. Why? Like most companies, his is self insured. An insurance company administers the plan, but the benefits are paid by the company. If there are few calims, the fund grows. If one person gets cancer, the fund is depleted and the unsupported costs grow.
The costs under the current system are not predictable. Businesses like predictability. He said if the fine for not providing insurance is 8%, that is predictable and a projectable cost of doing business. Businesses like this.
What happens if the one guy gets cancer in this case? The tax payer pays. Nancy has already told us, though, that the costs will never increase and the benefits will never decrease. Interesting math here.
Anyway, that's the opinion of one manager who understands how health care insurance works. It sounds pretty clear that most insurance companies are about to be legislated out of existance.
