Observations on life

Fake … er misleading news intended to … mislead

The following is from an e-mail from the left-wing Organizing for Action; a similar position is expressed by the Center for American Progress. These groups don’t live in the real world.

But now, there’s a new twist. It would allow states to opt out of critical provisions embedded in Obamacare, leaving anyone with a pre-existing condition — otherwise known as millions of Americans — at the mercy of big insurance companies, while their premiums spike as much as 3,500 percent.

In fact, here is what the draft changes actually say regarding waivers:

The amendment would create an option for states to obtain Limited Waivers from certain federal standards, in the interest of lowering premium costs and expanding the number of insured persons. States could seek Limited Waivers for:

Essential Health Benefits

Community rating rules, except for the following categories, which are not waivable:

Gender

Age (except for reductions of the 5:1 age ratio previously established)

Health Status (unless the state has established a high risk pool or is participating in a
federal high risk pool)

At the mercy of big insurance companies?

What the hell does that mean? Why are they saying that other than to mislead and inflame?  They are implying that somehow when an insurance company takes on more risk and cost through adverse selection and enrolling people with pre-existing conditions the premiums should not reflect that additional risk and cost.

Such action by insurance companies is not taking advantage of anyone, it is reflecting the reality of the situation and protecting their other customers. One of the reasons for the growth in premiums on the Obamacare exchanges is because of pent-up demand for care and adverse selection.

What insurance do you know of that will accept an already incurred risk, let alone not charge premiums to reflect that risk? Can you get auto insurance after you have an accident or property coverage after your roof has blown off?

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3 replies »

  1. Spike to 3500% Really? How in the world did they come up with that number. Insurance companies are regulated by states and are required to have a certain asset/liability/profit ratio. They make money when they guess correctly on the risk vs payout for a given year. If they have to raise the rates 3500%, they would pull out of the market instead of having nobody to insure so I would highly doubt anybody would be at the mercy of any insurance company because none would be left.

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  2. Spike to 3500% Really? How in the world did they come up with that number. Insurance companies are regulated by states and are required to have a certain asset/liability/profit ratio. They make money when they guess correctly on the risk vs payout for a given year. If they have to raise the rates 3500%, they would put out of the market instead of having nobody to insure so I would highly doubt anybody would be at the mercy of any insurance company because none would be left.

    Like

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