Little-Acorn
Gold Member
It's more like a plain health care payment co-op or commune, where all money is put into a pool and doled out as needed.
Nothing wrong with that (well, see below), but you should call it what it is rather than pretend it's "insurance".
Insurance is something that protects against huge losses by, when a person incurs a huge loss, pays for it out of a pool of money all its customers have paid in. It signs in clients based on the idea that none of them have huge problems at present, but a few might incur them later. If they can restrict their new clientele to just people who presently have nothing wrong with them, their costs will be lower. And they can compete successfully for customers.
If, however, they are required to take in people who have a pre-existing condition, they must (a) charge the people with pre-existing conditions a much higher premium since they are guaranteed to need much higher payouts up front; or (b) charge EVERYONE higher premiums to cover the pre-existing conditions, leaving most of them wondering why their premiums went up so much when they didn't get any sicker. (Sound familiar, Obamacare subjects?). And in a competitive world, most people will opt for the companies with lower premiums: Those that don't accept people with pre-existing conditions.
Companies that don't accept people with pre-existing conditions, are the only ones that can compete or even survive in a normal world of sovereign citizens. Healthy people (that's most of them) will leave the companies that accept the pre-existing conditions, and go instead to those who don't, because they get the same service for less paid in premiums. That leaves the companies that accept pre-existing conditions, with ONLY the people who already have expensive maladies or injuries, and their costs will soar as they pay for high-priced care for ALL their remaining customers.
If a company accepts pre-existing conditions, it's not "insurance". It's simply a co-op for people with problems. No one else will want to be a part of it, and the companies know they CANNOT survive without those usually-healthy people.
If you want to set up a company that accepts pre-existing, fine, go ahead. But don't pretend it's "insurance". Nothing could be further from the truth.
Nothing wrong with that (well, see below), but you should call it what it is rather than pretend it's "insurance".
Insurance is something that protects against huge losses by, when a person incurs a huge loss, pays for it out of a pool of money all its customers have paid in. It signs in clients based on the idea that none of them have huge problems at present, but a few might incur them later. If they can restrict their new clientele to just people who presently have nothing wrong with them, their costs will be lower. And they can compete successfully for customers.
If, however, they are required to take in people who have a pre-existing condition, they must (a) charge the people with pre-existing conditions a much higher premium since they are guaranteed to need much higher payouts up front; or (b) charge EVERYONE higher premiums to cover the pre-existing conditions, leaving most of them wondering why their premiums went up so much when they didn't get any sicker. (Sound familiar, Obamacare subjects?). And in a competitive world, most people will opt for the companies with lower premiums: Those that don't accept people with pre-existing conditions.
Companies that don't accept people with pre-existing conditions, are the only ones that can compete or even survive in a normal world of sovereign citizens. Healthy people (that's most of them) will leave the companies that accept the pre-existing conditions, and go instead to those who don't, because they get the same service for less paid in premiums. That leaves the companies that accept pre-existing conditions, with ONLY the people who already have expensive maladies or injuries, and their costs will soar as they pay for high-priced care for ALL their remaining customers.
If a company accepts pre-existing conditions, it's not "insurance". It's simply a co-op for people with problems. No one else will want to be a part of it, and the companies know they CANNOT survive without those usually-healthy people.
If you want to set up a company that accepts pre-existing, fine, go ahead. But don't pretend it's "insurance". Nothing could be further from the truth.