Wednesday, August 1, 2018

No Pay Health Insurance

They are going to offer people short term health insurance that doesn't cover very much to lure them away from the ACA.

Since we've eliminated the individual mandate, the people signing up for these will likely be actually looking for insurance, and depending on the individual policies they might get a bit of catastrophic coverage.

We know however that these plans will be offered by companies that are really interested in making quick profits, not providing meaningful coverage, so it going to be buyer's beware.

Policies like these were one of the things that was wrong with the health insurance industry so of course we are bringing them back.

They generally provide coverage in a very limited range, high deductibles and no free preventive care and low coverage maximums.

Of course anyone opting for these plans is effectively gambling and for some people they may actually be worthwhile.

It has a bigger consequence for the overall insurance pool since the best way to reduce premiums for everyone is to include everyone in the pool.

As we carve out young healthy people, we will see premiums rise as it increases the overall risk of he remaining plans.

Since much of this increase is paid by the Government subsidies, it impacts our taxes, or our deficit in a more indirect way.

Until we join the rest of the civilized world in providing all our people with adequate, complete health care we will see strategies like these played out.

Competition is medical services has been proven time and again to not work, and we see a system where profits are more important than health.

That's simply wrong.

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