I presume you're talking about high risk pools unless you changed what you were talking about mid-stream?
High risk pools have been tried in 5 or so states. In each state, the high risk pools went belly up. Why? because the premiums were so high that they were unaffordable.
With everything else that our Government throws money at like, oh say EDUCATION the lesson we've learned is that the more Government subsidizes something, the more it COSTS.
Eight billion dollars of subsidies spread out across fifty states is a pittance. Having said that, all it will do is drive the cost of the high risk pools UP HIGHER. Insurance companies like State Universities for example, will simply hoover up the "free money" and then take as much as they can get from those with pre-existing conditions --- assuming they get very many to sign up in the first place.
My preference is simple: Get Government OUT of the healthcare business, period. Make Healthcare insurers compete for business at a pure capitalistic level and this problem solves itself.
Capitalism's a beautiful thing that way. It solves every problem it takes on unimpeded by excessive government interference and regulation. Works every time it's tried too.
Five!??? Get real!
There were HRPs in 35 states. Want me to name them:
Alabama, Kentucky, Oklahoma, Alaska, Louisiana, Oregon, Arkansas, Maryland, South Carolina, California, Minnesota, South Dakota, Colorado, Mississippi, Tennessee, Connecticut, Missouri, Texas, Florida, Montana, Utah, Idaho, Nebraska, Washington, Illinois, New Hampshire, West Virginia, Indiana, New Mexico, Wisconsin, Iowa, North Carolina, Wyoming, Kansas, North Dakota
In other words, a majority of the states had one. Every HRP was created by its state legislature, and as a result was unique, unless copied from another state. Some states did a great job, some had lots of internal opposition and subsequently, their compromised efforts failed.
Why? because the premiums were so high that they were unaffordable.
Most had premiums of 150 to 200% above standard healthy rates, but after all, the patients were likely to have claims of $100,000 per year. those premiums are a drop in the bucket compared to the claims benefits they would receive.
Medical HRPs have been around for decades, way before Kennedy or Hillary came on the scene, and they did everything they could to destroy them. HRPs are also used in P&C lines.
Eight billion dollars of subsidies spread out across fifty states is a pittance
Actually the latest crop of HRP was federally funded with a million dollar grant per state as seed money.
My preference is simple: Get Government OUT of the healthcare business, period. Make Healthcare insurers compete for business at a pure capitalistic level and this problem solves itself.
Actually the HRPs are supposed to be a private sector entity, supported by all the carriers. It is a free market approach to allow the insurers to accurately assess risk.