2. Pre-existing conditions: The insurance companies limited their exposure from new policyholders to highly-expensive illnesses because they would have needed to either charge exorbitant rates to limited individuals to cover the risks or massively increased the rates of others not afflicted with the same ailments.
One might ask that since employer-sponsored plans do not exclude people for pre-existing conditions now why this will be such a problem. That is because the insurance companies are able to amortize their costs over the members of the policy.
In this new situation they will just being throwing people into an insurance group without any actuarial analysis. There is a program that does that now – it is called Medicare. That is a large reason expenditures for Medicare are out of control.
3. Equal charges for the two sex – Feminists never liked that insurance companies charged more for health insurance for women than for men. But you did not hear them arguing about auto insurance premiums that were higher for young males than for young females. The reason those rates were higher was because young males drove more and had more accidents. In California, in an attempt at equality, Proposition 103 eliminated different charges for males and females, so young girls were stuck with higher insurance bills to cover their boyfriends’ errant behavior.
In the same manner, insurance companies were not charging women more because the people who operated the companies hated their mothers. It was because women use medical services more frequently than men and therefore incur higher costs. They were charging the people who used the services for what they were using.
All of these new policies as part of Obamacare are wonderful in a make-believe world. But insurance is based on mathematical calculations. Actuaries study pools of policy holders and then calculate based on historical data what the projected outlays will be, then figure overhead and profit above that. That is how they come up with a monthly fee for members of their group.
Obamacare threw that all out the window. They figured on a group of young people obtaining insurance at rates above what their medical care experience would warrant. They have caused people to have significantly increased premiums, most with much higher deductibles. That is all with what for the most part are much smaller pools of providers (doctors and hospitals).
There are some winners, but most people are financial losers. That was never explained to Americans, but now that it is hitting them personally they are revolting. That is why there are so many penalties in the law. This is not sustainable on its own without threats and coercion. You could surmise that the writers of the bill new it would be hated. That is why crafters of the legislation wrote so many penalties into the plan. If the plan is so hotsy totsy people should be running to get it -- not running away?
One of two things will happen. The program will fail on the weight of its outrageously expensive requirements, or it will remain in place but only with the addition of much higher penalties and more threats of actions against those who won’t willingly overpay for their health insurance. We don’t believe the latter will be tolerated by the American people so we are left with the former.