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Heres where things go awry.
If an insurance company is certain that theyre going to pay, say, $2,500 in claims on a policy each year, then they need to collect at least $2,500 just to have a prayer of staying in business. In fact, with their own costs...[Snip] they might need to collect $5,000 just to have anything left over after paying out that $2,500.
Well that sounds kind of stupid, having to send the insurance company $5,000 just so they can send $2,500 of it back.
Hold that thought. Enter, Health Savings Accounts.
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This is just patently false scaremongering.
In the state of New Jersey, for every dollar in premiums collected, the health insurance companies must set aside 82.5 cents for claims. ObamaCare sets a national standard of 80 cents of every premium dollar set aside for claims.
With that set aside money, the insurance companies invest in low risk low yield investments... this scaremonger is instigating private individuals to invest in higher risk investment strategies with very small sums of money playing roulette with their medical treatment needs.
This author is a paid shill.
“This is just patently false scaremongering.
ObamaCare sets a national standard of 80 cents of every premium dollar set aside for claims.”
—Do you really think that Obamacare is going to be successful in that effort? When have price controls, or forced cost controls by the government, ever really worked? Something else has to give.
“With that set aside money, the insurance companies invest in low risk low yield investments... this scaremonger is instigating private individuals to invest in higher risk investment strategies with very small sums of money playing roulette with their medical treatment needs.”
—Who says that individuals have to put their money into risky investments? And why do we necessarily need to impose administrative costs on individuals- wouldn’t it make more sense for that extra amount of money to be invested as well (even in low risk investments)?
And besides... the alternative options are growing narrower and narrower each year as we rush headlong into bankruptcy.