Government Sponsored Adverse Selection

Once Upon A Time there was a young man in dire need of medical care but he had no insurance………….

Joe Sixpack was young and healthy and not about to pay any portion of his employer sponsored health plan so he declined coverage. He had more important things to do with his money.

Then one day Joe suffered a serious health issue. He was admitted to hospital through the ER. The hospital learned Joe had no insurance so charitable care was extended, leaving Joe lien-free-clear.

A kind and gentle hospital social worker advised Joe he needed health insurance as his condition would require on-going and expensive treatment. Joe was informed government mandated health insurance must cover pre-existing conditions and he should apply.

Joe was given the name of a local insurance agent. “Trust me Joe, this guy will get you the insurance you need and it will probably cost you next to nothing!” assured the kind and gentle social worker.

Lucky for Joe, the President of the United States had extended Open Enrollment season for accessing guarantee-issue, no pre-existing condition exclusions health insurance through the federal exchange. With the help of the hospital’s recommended insurance agent Joe enrolled on an individual policy and headed directly to the doctor’s office to begin chemotherapy treatments. He stopped at the drug store on his way home to pick up his new medications. Money was no object.

Lucky for Joe his insurance was subsidized by the government. He only paid $10 per month for coverage costing hundreds of dollars per month. The hospital’s recommended sneaky insurance agent arranged that to happen.

IRS thugs were clueless.

This true story has a very, very happy ending. The hospital was happy, Joe was happy, his doctor was happy, the drug store was tickled, his employer was ecstatic and his insurance agent made his sales quota experiencing true happiness sipping umbrella drinks on a beach in Tahiti.

And they all lived happily ever after…………..


The moral of this story is never pay for something you don’t need but have someone else pay for it when you do.