9 votes

Trump administration halts $10.4 billion in health insurance payments

2 comments

  1. Diet_Coke
    Link
    These payments are essentially government-brokered re-insurance. The result will be that coverage gets more expensive for older, sicker people and less expensive for younger, healthier people....

    The payments are intended to help stabilize health insurance markets by compensating insurers that had sicker, more expensive enrollees in 2017. The government collects the money from health insurers with relatively healthy enrollees, who cost less to insure.

    These payments are essentially government-brokered re-insurance. The result will be that coverage gets more expensive for older, sicker people and less expensive for younger, healthier people. However because of the other ways the Trump administration is breaking the healthcare system, i.e., not enforcing the mandate, nobody is going to end up with a lower premium next year. This could result in a situation where low-risk people decide not to purchase insurance, resulting in only the most expensive to insure people buying into the system at ever-increasing rates.

    4 votes
  2. semideclared
    Link
    Not paying for services prefomed is theft in most places. If you are looking for an example of what is to come. Look no further than college costs, for example Virginia. The single largest...

    Not paying for services prefomed is theft in most places.
    If you are looking for an example of what is to come. Look no further than college costs, for example Virginia.

    The single largest contributor to above average college costs is the state government withdrawing promised funding

    Virginia introduced a 70/30 policy in 1976. Under this plan, E&G appropriations were based on the state providing 70% of the cost of education

    The student share of the cost of education in FY2018 is estimated to be at 53% with the state contribution at 47%.

    3 votes