This was posted as a comment on a friends post on Gruber and 0bamacare. I have heard from insurance agents - this is an opinion of someone in a different aspect of insurance. Think about this when you complain that the insurance companies, not 0bamacare, are responsible for astronomical rate hikes. Think again. I have worked in insurance for 20 years. Anybody who knows anything about risk knows that insurance companies had lifetime caps on coverage and things like that to be able to know how much theyd be on the hook for in case of a catastrophic event, which obviously doesnt happen to everybody, but when it does happen, its damned expensive. When you make it so that a 25 year old runner who doesnt drink or smoke and has a very healthy lifestyle pays the same as a person in their 50s with multiple issues like diabetes and hypertension, it is imperative that rates rise across the board to make up for the shortfall. Insurance is a hedge against risk. If you cant charge somebody more based on the fact that they pose more of a risk, youre putting the insurance companies in an untenable position, and in time, they will mathematically have to go bankrupt. However, the other thing that isnt getting very wide media coverage is the subsidies in the tens of billions of dollars that are being handed out to the insurance companies to cover up the fact that they are taking a big hit. It doesnt do the governments position any good if the people providing the insurance coverage are put out of business, so they have to make up the shortfall. C Steven Tucker
Posted on: Mon, 17 Nov 2014 17:41:32 +0000
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