Quote:
Originally Posted by rahl
to me it's equivelant to the sub prime mortgage situation. the govn't forced banks to lend money to people who couldn't afford it. The same is going to be true with insurance. They are going to force insurance companies to accept everyone and eliminate annual and lifetime caps, as well as reduce out of pocket maximums. There is no feasable way this can work unless they also force hospitals and doctors to take a considerable pay cut in terms of what procedures cost. I'd love to see how the AMA would react to that.
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As I understand the mortgage melt down it was not so much the bad loans that were the problem but the Wall Streeters who bundled them into investment vehicles leveraged to the hilt so that even a small drop in real estate values made the swaps and dirivatives worthless. I think the banking system could have easily absorbed the mortgage losses if it wasn't for the casino style gambling they engaged in.
Also I believe the thinking is that increasing the health insurance pool by requiring everyone to purchase insurance will go a long way to offset the costs of the pre-condition and cap reforms proposed. I guess alternatives to these insurance reforms include having our government pick up the costs directly or just let those sick people go bankrupt and/or get sicker.