Quote:
Originally Posted by Derwood
they already do that, but the $400 goes to the CEO/stockholders instead
|
And that is the problem. It should go back to the people.
The fundamental problem is that the free market and health care do not work well together. When the opportunity cost is death there is no limit to what health care providers can charge and thus they can extort people for all that they own and in a true free market fashion that is exactly what they do.
---------- Post added at 10:24 PM ---------- Previous post was at 10:21 PM ----------
Quote:
Originally Posted by rahl
That's not a feasable option though. If you refund all the money at the end of the year, then there's no money to be paid out for the following year. Each person is only paying say $100 dollars a month, it will take time for the premiums to build up in order to pay out. If they have to pay out $600,000 in claims in the month of january they will go bankrupt and be unable to pay. Plus it wouldn't be fair. Think of your cell phone bill. say you pay $90 per month for 1,000 minutes. If you only use 600 minutes do you get a refund? of course not. You are paying a predetermined amount per month for a maximum amount of minutes. If you didn't use them all it's not your cell phone providers fault. Same with insurance. You are paying your premiums because you are affraid you MIGHT need to file a claim. You have a maximum benefit that will be paid out for a predetermined amount of premium. it's the same thing
|
A smart insurance company would keep a large savings pool for this. The refund could also occur a year behind if it were needed but I'm not convinced it is needed. Alternatively the refund could also be applied to future premiums. Right now we need to limit how much money the insurance companies fleece from sick people.
How come the percent of premiums spent on actual health care has decreased substantially over the last 10 years?