Another modification would provide a measure of protection for insurers against high-cost enrollees. When a member’s claims exceed $2 million annually, the cost would be shared among multiple insurers under the proposal.
For all those public option fans out there, consider the above proposed strategy.
Very high cost claims would be shared by multiple insurers. The attempts to mask the risks of adverse selection in light of the inability to underwrite those risks only gets more bizarre. As long as we have a program that allows, if not encourages, people to game the system, none of this will work.
As for the public option, who do you think will be picking up those $2 million plus claims?