Learning more about health insurance going forward

The rebates come in the form of adjusted premiums. If the insurance is paying out less than the 85% they take in, rates go down, or more likely, don't go up as much as the risk says they should. It they are paying out more than the 85% rates go up. That is perfect world of theoretical economics. With state insurance commissioners up for re-election, they delay the rate increases as long as possible, until companies state they will pull out of state, then wham, you see the big, periodic rate increase.

Insurance is simple, like a ballon, really, everyone is squeezing as hard as they can, but it gets squeezed to hard, it pops. That is why a lot of big companies are not playing, yet, in Obamacare. Big companies don't like pops.

We worked on getting reinsurance for a large organization for a number of years, until I could not take the lying anymore. We took in about $34m a year in premium. One year, due to some stuff in a specific state, the company paid out 36 million, we were able to hold premium increase to only 2 million, reinsurer wanted about 5 million. Two years later, premium was up to about 37 million, but they only paid about 31 million in claims. You better bet the client wanted a rate reduction the next year. This was self funded, client only had insurance on catastrophic, but it illustrates the way it works.

Finally, the real problem is that in both health, and property and casualty, the RISKS are always going up. More people, more property, more property on coasts (bad juju), and health, people used to get sick and die, no big deal for health, but now they live through event after event after event, all of which cost a lot of $$.

What is interesting is the life is getting cheaper, theoretically since people are living longer.

Some time ago, the actuarial tables between the life guys (how long you will live) and the annuity guys (how long till you die) got out of whack and smart folks made BILLIONS on the arbitrage. I think that has been stopped, but there are always smart guys around who can make money at someones expense. Always!

When you look at President Obama's top aides, the lack of business experience, in this arena, is startling.

 

One of the big problems is insurance is so complex. I hated working in it. One of the big California announcements talked about the exchanges being some huge percentage less than current rates.

Here is the deal, the comparison was for group rates under Obamacare (I guess teh exchanges) vs a guy coming in off the street (individual) and asking for insurance. A least vs most comparison.

Additionally, two of the four companies that put the California rates together, pulled out of California within a week of submitting their rates.

I still get a lot of insider crap from past associates who love that shit. I hated it, it is why I took a paycut to 1/3 of insurance salary. Into freaking 8th grade pre-algebra...about the worst briar patch imaginable!

I would not have made it another year. And we tried hard to be honorable, and treat everyone with integrity, always do the right thing I still could not take it. It was, believe it or not, more slimy than working on the US Intelligence program and budget. UGHHHHH! I still do numbers, math, not insurance or planning programming and budgeting!

 

Nice anecdotal story that by far does not completely explain a plan that the CBO has stated with reduce the deficit.

 

There have been several adjustments to the initial CBO projections. They now project billion dollar additions to the deficit and a 9 trillion dollar unfounded liability. Read the news dog.

 

I am paying $250 a month for my "film art director daughters" TRICARE for children insurance. I am going to advise her, demand, but she don't care, she go on line and see what she can get. She has made squat since graduation May 2013. Though she has 3 films alilgned for the next 6 months or so. I would love my ACA rebate of $250 back in my greasy little fingers.

 

All the govt. is doing is cost-shifting to the young. We will be back to the same increases in a year or two.