One of the strange things about the market for health
insurance is that almost none of us ever sees a real price. More than 90
percent of people with private coverage get it through an employer. Employers,
on the average, pay about three-fourths of the cost and the remaining share
tends to be the same for every employee—irrespective of expected health care
costs.
In most states, the only people who face real premiums
are in the “individual market,” where individuals and families pay for
insurance out of their own pockets. Yet the Affordable Care Act (ObamaCare)
will outlaw the pricing of individual risk (medical underwriting) by year’s
end. Health insurance, therefore, is very different from just about every other
form of insurance.
In other insurance markets, a person newly entering an
insurance pool will be charged a premium that reflects the expected cost and
risk the individual brings to the pool. With respect to life insurance,
disability insurance, homeowner’s insurance and (for the most part) even auto
casualty insurance, you pay for what you get.
That practice, by the way, works quite well…..To Read More….
No comments:
Post a Comment