- Banned
- #1
Robert Laszewskia prominent consultant to health insurance companiesrecently wrote in a remarkably candid blog post that, while Obamacare is almost certain to cause insurance costs to skyrocket even higher than it already has, insurers wont be losing a lot of sleep over it. How can this be? Because insurance companies wont bear the cost of their own lossesat least not more than about a quarter of them. The other three-quarters will be borne by American taxpayers.
As Laszewski explains, Obamacare contains a Reinsurance Program that caps big claim costs for insurers (individual plans only). He writes that in 2014, 80% of individual costs between $45,000 and $250,000 are paid by the government [read: by taxpayers], for example.
In other words, insurance purchased through Obamacares government-run exchanges isnt even full-fledged private insurance; rather, its a sort of private-public hybrid. Private insurance companies pay for costs below $45,000, then taxpayers generously pick up the taba tab that their president hasnt ever bothered to tell them he has opened up on their behalffor four-fifths of the next $200,000-plus worth of costs.
Bailing Out Health Insurers and Helping Obamacare | The Weekly Standard
Ouch, turns out the ACA more single payor than any of us knew.
As Laszewski explains, Obamacare contains a Reinsurance Program that caps big claim costs for insurers (individual plans only). He writes that in 2014, 80% of individual costs between $45,000 and $250,000 are paid by the government [read: by taxpayers], for example.
In other words, insurance purchased through Obamacares government-run exchanges isnt even full-fledged private insurance; rather, its a sort of private-public hybrid. Private insurance companies pay for costs below $45,000, then taxpayers generously pick up the taba tab that their president hasnt ever bothered to tell them he has opened up on their behalffor four-fifths of the next $200,000-plus worth of costs.
Bailing Out Health Insurers and Helping Obamacare | The Weekly Standard
Ouch, turns out the ACA more single payor than any of us knew.