We cannot treat people like cars

Discussion in 'Politics' started by ElmerMudd, Nov 9, 2009.

  1. ElmerMudd
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    ElmerMudd Gold Member

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    Insurance companies purpose is to maximize profits.

    Auto insurance is the perfect model. You increase premiums or eliminate individuals who are the highest risk; those with many tickets, many accidents, DUI's etc.
    We do not have to pay higher premiums because of the irresponsible behavior of others.
    You reduce the risk of the insurance pool and increase the profits of the insurance companies.

    Those that add risk and reduce profits in health insurance are not irresponsible drivers. They are older people, people with cancer, heart disease and other chronic conditions. How do health insurance companies reduce risk and increase profits? In many cases by eliminating the high risk users? It is the same business model as automobile insurance.

    The government is already helping the priivate health insurance company by insuring many of those with the highest risk through Medicare and Medicaid.

    Anyone who says the private insurance companies can best serve our needs on health care are incorrect. The private insurance companies already rely on the government to take many of the high risk individuals off their rolls.

    Without Medicare and Medicaid many individuals would not have coverage and the insurance companies would have lower profits.

    The private insurance companies cannot meet our needs without the governments help. The only question is how much will the government be involved?
     
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  2. The Rabbi
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    The Rabbi Diamond Member

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    You are a complete ignoramus.
    Let's start with what insurance is: it is the pricing of risk. A person who has 5 DUIs, is under 25, drives a Corvette, and lives in LA is going to pay a much higher premium (where he can get auto insurance at all) than someone who is 50 with a perfect record driving a 2004 Chevrolet in Idaho. Everyone understands this.

    Similarly, a 50 year old man who is grossly overweight and smokes is far more likely to incur medical expense than someone who is 19 and healthy. In an insurance pool the healthy people will subsidize the unhealthy ones. This is spreading the risk of adverse events around and what makes insurance work. The risks are well known through historical data, and therefore can be priced.

    The government has forbidden health insurance companies from dropping people because of claims. So the rhetoric about this is simply wrong. They do drop people because of fraudulant applications. And they cannot raise premiums on a single person because of claims either. Premiums go up as claims within that group go up.

    But insurance companies do something government cannot: they can subsidize their operating losses (claims paid versus premiums received) with returns on their invested capital. And indeed many insurers do this, especially when markets are good and they want more "float" on their money. Look at something called the "combined ratio".

    But risk is risk. It does not matter who is calculating it, government or private companies. And that risk costs something. So the companies that can be most competitive are those that have lower overhead and good underwriting on policies, as well as controls on claims.
    The government has a miserable record on keeping costs low on any program they have ever undertaken. They will have a miserable record on underwriting because they already have one on applications for other entitlement programs. And instead of investigating claims and denying inflated and fraudulent claims, they will simply use their power to cap reimibursements below market.
    This is why we will end up with 3rd world substandard care under Obamacare, rather than the dynamic innovative system we have now.
     
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  3. ElmerMudd
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    ElmerMudd Gold Member

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    Rabbi, Rabbi, Rabbi you are ignorant

    RISK is the biggest variable in insurance. Overhead is a small part. Health Insurance companies look to lower risk any way they can. Insurance companies cannot cancel individuals but they can cancel group policies and they do. TRY BEING A SMALL COMPANY AND GET HEALTH INSURANCE. SMALL POOL HIGH RISK MEANS NO COVERAGE OR VERY HIGH RATES. I know because I own a small business.

    The government is already subsidizing private insurance company through Medicare and Medicaid. Private companies do not want the high risk individuals.

    AMERICAN HEALTH PLAN IS CURRENTLY A PARTNERSHIP OF GOVERNMENT AND PRIVATE COMPANIES AND WILL BE IN THE FUTURE.
    PRIVATE COMPANIES CANNOT DO IT THEMSELVES NOR DO THEY WANT TO.
     
  4. rightwinger
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    rightwinger Paid Messageboard Poster Gold Supporting Member Supporting Member

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    Then why does Medicare have lower management overhead than any private insurance company?
     
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  5. Oddball
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    Oddball BANNED Supporting Member

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    Not that stupid old chestnut again.

    How much advertising do Medicare/Medicaid do?
     
  6. Ame®icano
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    Ame®icano Gold Member

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    How many private insurance companies are bankrupt?
     
  7. Mr. H.
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    Mr. H. Diamond Member

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    We cannot treat people like cars

    Can't say I've walked into a deer lately.
     
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  8. rightwinger
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    rightwinger Paid Messageboard Poster Gold Supporting Member Supporting Member

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    Exactly..

    Also the government pays its executives one percent of what insurance companies pay, no advertising, no lobbyists, no buying congressmen

    Government is a much more efficient option
     
  9. Oddball
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    Oddball BANNED Supporting Member

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    You can't be serious.

    Y'ever stop and think about how many more people ad campaigns employ?

    Also, administrative costs aren't the only items on the expense side of the ledger. Like 99% of the arguments for Medical Marxism, the administrative costs angle is intellectually dishonest.
     
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  10. Ame®icano
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    Ame®icano Gold Member

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    So, if there is no overhead, lobbyists, advertising, how come they are on the edge of bankrupt all the time?
     
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