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View Diary: Vast Majority Will Pay Less And Get Better Coverage Under ObamaCare (51 comments)

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  •  Under ACA, Insurance is no longer based on (0+ / 0-)

    insurance principles, but is in effect a national healthcare program designed to partially go through "insurance companies."

    Insurance principles in general prices coverage based on the expected cost of the customer plus expenses and cost of capital.  The estimate for the customer's cost was based on easily determined factors.  In this way, no customer subsidizes another customer (on an actuarial basis).  This is why rates or coverage considered pre-existing conditions, age, gender, home address, coverage selected, etc..

    ACA is designed so there are substantial subsidies for some while others pay for those subsidies.  Those getting the subsidies will generally like the change much more than those paying for the subsidies.  This is why great attention is paid to the young and healthy signing up for ACA health insurance - they are needed to subsidize others.  

    The most important way to protect the environment is not to have more than one child.

    by nextstep on Fri Nov 22, 2013 at 11:18:58 AM PST

    [ Parent ]

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