Quote:
Originally Posted by rahl
If you think that insurance premiums are going to go down then you must be very bad at math. Increased risk will equal increased premium. It has to in order for the Insurance company to remain solvent. State insurnace departments will not allow an insurance company doing business in it's state to run the risk of becoming insolvent. Mandating that no pre-ex's be denied is all well and good, but the increase in premiums will be felt by everyone in order to cover those at higher risk. There's absolutely no way around that.
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Your math leaves out the fact that he way around the higher risk is to increase the size of the risk pool (by 30+ million) and the addtional way to reduce premium costs is to increase competition in what currently is a relatively closed market in many (most states) as a result of anti-trust exemptions.
I am not suggesting that premiims will go down, although for many, I would expect marginal decreases or for rates to remain relatively stable. For most, premiums will not continue to increase at rates that are unmanageable at a personal level (6% or more annually - 2 or 3 times more than wages or more than 100% over the last 10 years).