Thursday, November 14, 2013

Insurers "To Collapse" Under ObozoCare? Nope

You've seen the Dire Warnings.  Since the Unicorn-Fart webpage is more fart than unicorn, only the very sick will manage to apply, enroll, and get coverage.  And the healthy yout'?  They won't bother.  Then the po' po' po' insurance companies will go broke.


Wrong, turkey.  Those insurers will take it out of YOUR hide.

The backstop is an approach known as the "three R's."..."All three of those significantly shield the plans from adverse selection," says Timothy Jost, a law professor at Washington & Lee University and a fan of the Affordable Care Act...

...The most the temporary reinsurance program. It's a big pot of money from which the Health and Human Services Department will simply reimburse insurers for the cost of covering especially sick consumers....

...Risk corridors: This program is designed to protect the overall marketplace if more high-cost patients than expected sign up. If an insurer's real costs are higher than it planned, the government pays it part of the excess. If its costs are lower than it planned, the insurer pays the government.

...Companies with an especially healthy risk pool make a cash payment to companies that ended up with an especially unhealthy one

Should ObozoCare be preserved, you can bet that the "reinsurance" program will grow--not mathematically, but exponentially.  

Come to think of it, you've already placed that bet.  You're the one who will be paying the "r" of re-insurance.


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