question about the health care reform

[Anonymous]

I'm confused.

So you add in all these previously un-insurable people including some (many) with very expensive conditions. In fact, a disproportionate number (when compared to the population at large) will "cost" an insurance company far more in claims than the $$ that they or the government pay in the form their premiums.
How does this not raise the premium rates for everyone or even cause them to skyrocket? What prevents insurance company A from saying, well, we are now paying out $8 billion a year instead of $4 billion and so we're going to split the cost among everyone we insure?

[Anonymous]

Well, the federal government manages to do it. I work for the feds and I got my health insurance through them no questions asked and my asthma meds alone cost about $400 per month, but I just pay $7 per prescription. I have a coworker who is on HIV meds, very expensive. I have another coworker who had a baby in the NICU for 5 months, racked up hundreds of thousands in bills, but her insurance covered all put the copays. And our premium went up less than 5% from last year.

Part of it is going to be that the presidents of these companies probably can't take home $500 million paychecks.

Another part of it is going to be that lots of people who aren't that unhealthy are going to sign up, too.

[jsteele]

The pool of young and healthy insured will also grow as a result of the personal mandate. Their premiums will offset the increased payouts to some extent. Also, current insurance payouts factor in payment for hospitals' provision of care for which the hospital is not paid (the hospitals pass that on to all their customers). Typically, the uninsured show up at the emergency room at the last possible moment when they are the most expensive to treat. By getting them into community health clinics, providing them insurance, and emphasizing preventative medicine, the cost of treating them will decrease. Those savings should be passed on to insurers as well. Sadly, insurance companies may be forced to lower their record profits and huge executive bonuses, but I am sure those will only be last resorts.

[Anonymous]

Anonymous wrote: Part of it is going to be that the presidents of these companies probably can't take home $500 million paychecks.

Anonymous wrote: Sadly, insurance companies may be forced to lower their record profits and huge executive bonuses, but I am sure those will only be last resorts.

Somehow I see the insurance companies passing on premium increases long before they even consider a decrease in salaries and/or profits. This is what worries me. You will have a disproportionate % of "sick" that sign up as part of the newly insured. Many young and healthy will still play the odds and decline insurance as they always have. Unless it's mandated by law (with more than a minimal fine attached as has been proposed) or free a certain category of person (i'm thinking of my brother here) will refuse to enroll.

[Anonymous]

Anonymous wrote:

Anonymous wrote: Part of it is going to be that the presidents of these companies probably can't take home $500 million paychecks.

Anonymous wrote: Sadly, insurance companies may be forced to lower their record profits and huge executive bonuses, but I am sure those will only be last resorts.

Somehow I see the insurance companies passing on premium increases long before they even consider a decrease in salaries and/or profits. This is what worries me. You will have a disproportionate % of "sick" that sign up as part of the newly insured. Many young and healthy will still play the odds and decline insurance as they always have. Unless it's mandated by law (with more than a minimal fine attached as has been proposed) or free a certain category of person (i'm thinking of my brother here) will refuse to enroll.

Actually I believe it is going to be mandated by law. Just the way that states require people to have auto insurance.
Here's the reality -- we as a society can pay for people who get free medical care at emergency rooms or we can make people get health insurance. Does your brother expect that he should get free treatment at an emergency room if he is in a disastrous car accident? Or is he just planning to spend the rest of his life paying the bill off? If it's the latter, I can respect that -- however I do believe he would be in the minority.