Quote:
Originally Posted by ASU2003
Why does this scene from Full Metal Jacket seem appropriate.  |
Yea, and do you know what Private Pyle does to that Sargent? Don't "F" with a man's jelly donuts, or in my case my cinnamon rolls.
Getting back on topic.
If I ran a health care insurance company and there is a non-profit government plan on the table, I would set my rates so I could cherry pick the healthiest classes of people. To the contrary of making me honest, the government plan would encourage me to game the system.
If I sell some employer group plans that are not profitable, I would go to those groups and say your premiums are X% higher than the government plan, you should switch. With the profitable group plans, I would lower premiums or make sure I offered something marginally better than the government plan to keep the business. In the end the government plan will end up with the least profitable risks. The government plan would have to raise premiums accordingly. And then for the profitable plans I kept could raise premiums, maintaining as small an advantage over the government plan as possible to keep the profitable business. I love it when a plan comes together. If any health care insurance companies come out in support of a government option, you should wonder why.