Quote:
Originally Posted by Jim in CT
RIJIMMY, I am an actuary, which is a guy who crunches numbers for an insurance company, so I know what I'm talking about (although I don't work for a health insurer). Insyrance is also heavily regulated...companies cannot just charge whatever they want, if they want to raise rates, they have to convince state regulators that the increase is necessary.
Health insurance is expensive, but it's expensive because the thing being insured - healthcare - is expensive. Insurance companies do not have fat profit margins, in fact, the profit margins are pretty thin. So making insurers out to be the bad guy, which Obama did, is a little off. If we operetaed on a break-even basis, your premiums would go down by 4% or 5%, no more.
Obamacare forces insurers to cover kids until they are 26, it forces insurers to cover preexisting conditions. That stuff costs $$, which means to cover it, insurers have no choice but to raise prices. It's that simple.
Nothing in Obamacare (except maybe cutting down on fraud) will lower the cost of healthcare. Most of the provisions will increase the overall costs. Insurers literally have no choice but to raise rates. That's what we're seeing.
I happen to think that covering pre-existing conditions is a good thing, because no one chooses to be born with health issues. But it's expensive.
One thing that would significantly lower the cost of healthcare is tort reform...eliminting nuisance malpractice suits. Obama wouldn't even discuss that, because his party gets $$ from the trial lawyers lobby, and trial lawyers like lawsuits.
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My one liberal buddy who I argue with ALL the time is an actuary and he sees it just the opposite! I agree with you though. I never understood how it would lower costs, but thats the pitch they gave the country. As far as pre-existing conditions, thats a bit misleading too, I went through all of this as my parents were unemployed and both fighting cancer. I became familiar with the laws and its not what the Dems/Obama would have you think. There were already pretty strong laws on pre-existing condition, that may have varied by state. My point is that this a major undertaking by Obama and most Americans are going to see the rise in costs, and realize they been sold a pile of poop.
John - dont know how much, the email just said "significantly"