Archive for the ‘Adverse selection’ Category

Do the ObamaCare exchanges really need healthy young people?

April 3, 2014

Now that the ObamaCare site has logged over 7 million sign-ups (yeah, right) I expect the focus to shift to the mix of the Exchange’s mix of old, unhealthy folks who consume lots of healthcare (i.e. more than they pay for their insurance) and young invincibles who pay in but don’t consume much.

The common wisdom is that the ObamaCare insurance exchange needs healthy young people to subsidize the older, less healthy enrollees … otherwise, policies offered on the exchanges will go into a premiums’ death spiral.

I’m not so sure.

 

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Here’s my thinking …

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Posted in Adverse selection, ObamaCare | Leave a Comment »

Do the ObamaCare exchanges really need healthy young people?

November 7, 2013

The common wisdom is that the ObamaCare insurance exchange needs healthy young people to subsidize the older, less healthy enrollees … otherwise, policies offered on the exchanges will go into a premiums’ death spiral.

I’m not so sure.

 

image

 

Here’s my thinking …

(more…)

Posted in Adverse selection, ObamaCare | 2 Comments »

Adverse selection: Will “adult children” destroy ObamaCare economics?

October 22, 2013

I’ve railed for awhile re: one of ObamaCare’s most popular benefits … forcing insurance companies to allow “adult-children” to be appended to their parents’ health insurance policies.

I wouldn’t mind if they – or more accurately, their parents – were paying for the coverage … but they typically aren’t

All other folks are being forced to pay higher premiums to cover the added costs.

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Let me explain the economics and tie it to another likely ObamaCare “glitch” …

(more…)

Posted in Adverse selection, Health Care / Medical Insurance, ObamaCare | 1 Comment »