Archive for March 19th, 2013

PPACA – Elementary Insurance Principles Under Stress

Tuesday, March 19th, 2013

“Guaranteeing health coverage to anyone who applies  strips insurance companies of their ability to mitigate moral hazard where individuals wait to purchase insurance when they are sick or in need of medical attention and drop coverage if they recover…… the collapse and redistribution of rate bands and ratios and the limitation of underwriting factors will reshuffle the insurance underwriting deck ………………….”

http://chaoco.com/Data/Files/Market%20Reform%20-%20Guaranteed%20Issue%20and%20Insurance%20Rating%20under%20ACA.pdf

Editor’s Note: Will property casualty cover be next? Wouldn’t it be cool if you could run down to the State Farm office 24 hours before Hurricane Obama hit your property to get adequate coverage for wind, flood and personal property? Pay for insurance only when you need it!

Ah, but it really is the ChargeMaster…………..

Tuesday, March 19th, 2013
 “If you don’t like paying the Cleveland Clinic Medicare at + 50% they will bill you Medicare + 500% and sue you if you don’t pay. It is not a case that private insurance is happy with Medicare + 50%, they can’t afford Medicare + 500% which is the alternative. If hospitals had reasonable charge masters that more closely reflected what they were actually willing to accept more people would go without PPOs.”