| theprof00 said: I dunno really much about this whole thing, but I feel like the free market will take care of this price increase. If I were an insurer, I'd just keep the same rates and eat all the other insurer's dropouts. I really don't understand why they are going up in premiums. |
There are two major reasons.
1) For one, for insurance to work, it has to cost more then treatment will. Since this law now makes it so that sick people can sign up whenever they want for healthcare. It has to go up quite a bit.
Since someone who is middle class or just above medicaid can more or less just pay the fine, and jump on healthcare whenever they need.
Considering that health insurers never made much of a profit to begin with, this is a huge jump.
Which is basically what rich people did anyway.
2) The ACA is subsidizing the middle and upper class so you don't have to pay more then a percentage of what you make in income for brozne and silver plans.
Meaning it's impossible to undercut in these plans because the government is going to pay for everything over anyway.
Meaning healthcare companies will max out these premiums within reason.
